Canadian Dollar and Business Outlook: Loonie sitting firm

By Glen Hallick

Glacier FarmMedia MarketsFarm – The Canadian dollar was virtually unchanged on Tuesday morning as a stronger United States dollar was countered by higher crude oil prices.

As of 8:45 am CST, the loonie was at US$0.6957 or US$1=C$1.4378 compared to Monday’s close of US$0.6954 or US$1=C$1.4381.

On the U.S. Dollar Index, the greenback climbed 0.510 of a point at 107.670.

Benchmark crude oil prices were higher on Tuesday morning due to protests at two Libyan ports. However, the increases were tempered by more weak economic data out of China.

Brent crude oil added 56 cents at US$77.64 per barrel and West Texas Intermediate rose 52 cents at US$73.69.

The Bank of Canada and the U.S. Federal Reserve will make their respective interest rates announcements on Wednesday. The BoC is expected to cut its key rates by 25 basis points, while the Fed is to standpat on its rates.

Shortly after Tuesday’s opening, the TSX/S&P Composite Index was up 53.19 points at 24,342.034.

Gold advanced US$21.80 at US$2,760.20 per ounce.