Canadian Dollar and Business Outlook: Loonie down, Fed to make announcement

Glacier FarmMedia MarketsFarm – The Canadian dollar took a small step back on Wednesday morning.

The loonie was at US$0.7358 or US$1=C$1.3591 as of 8:45 a.m. CDT, compared to US$0.7363 or US$1=C$1.3581 on Tuesday.

The United States Dollar Index jumped 0.66 of a point at 104.09, its highest level in nearly a month. The U.S. Federal Reserve is likely to announce no change in its key interest rates later today.

Despite reports of tightening U.S. crude oil stockpiles, prices tumbled on Wednesday. Brent crude oil fell US$1.08 at US$86.30 per barrel. West Texas Intermediate (WTI) dropped US$1.29 at US$82.18/barrel.

The TSX/S&P Composite Index gained 37.58 points at 21,898.16.

Gold declined US$3.80 at US$2,155.90 per ounce.