Canadian Dollar and Business Outlook: Loonie, crude oil struggle

The Canadian dollar slipped a little lower on Wednesday.

The loonie was at US$0.7267 or US$1=C$1.3761 as of 8:33 a.m. CDT, compared to US$0.7275 or US$1=C$1.3746 on Tuesday. The United States Dollar Index was up 0.08 of a point at 106.30. The U.S. Federal Reserve is largely expected to announce later today it will leave its key interest rates unchanged.

Growing U.S. inventories put pressure on crude oil prices. Brent crude oil dropped US$1.19 at US$85.14 per barrel. West Texas Intermediate (WTI) cut US$1.26 at US$80.67/barrel.

The TSX/S&P Composite Index declined 19.26 points at 21,695.28.

After Tuesday’s substantial losses, gold recovered US$6.70 at US$2,309.60 per ounce this morning.