Canadian Dollar and Business Outlook: Loonie lower, crude oil rises

The Canadian dollar turned lower on Tuesday morning.

The loonie was at US$0.7245 or US$1=C$1.3803 as of 8:31 a.m. CDT, compared to Friday’s close at US$0.7277 or US$1=C$1.3742. The Bank of Canada did not publish a closing rate on Monday due to Labour Day.

The United States Dollar Index was up 0.60 of a point at 98.37. The U.S. Court of Appeals for the Federal Circuit ruled on Friday that President Donald Trump was wrong in declaring national emergencies to impose tariffs on goods worldwide. However, the tariffs were allowed to remain in place. New data on jobless claims will be released later this week.

Crude oil prices were higher today after Russia and China signed a major deal towards the construction of the Power of Siberia 2 pipeline, which will begin in western Siberia, run through Mongolia and send natural gas to northern China.

Brent crude oil was up US$0.31 per barrel at US$68.46/barrel for the November contract. West Texas Intermediate rose US$0.96 at US$64.97/barrel for the October contract.

The TSX/S&P Composite Index fell 164.16 points at 28,400.29.

Gold jumped US$26.40 per ounce at $3,524.50 after reaching an all-time high of US$3,578.40 earlier in the day.