Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, May 21 – The Canadian dollar was weaker Tuesday morning, as the currency markets saw some adjustment ahead of testimony from US Federal Reserve chairman Ben Bernanke later this week.

At 9:37 CDT Tuesday morning the Canadian dollar was at US$0.9694 or C$1.0316 which compares with Friday’s North American close of US$0.9717, or C$1.0291. Canadian markets were closed Monday for Victoria Day.

The Fed’s Bernanke is scheduled to speak before Congress on Wednesday, and recent improvements in the US economy have given rise to expectations that the Fed may be moving closer to reversing its policy on quantitative easing.

A softer tone in crude oil and other commodity markets also weighed on the Canadian dollar.

The TSX was stronger Tuesday morning, up 122.56 points at 9:37 CDT to sit at 12,735.61.