Canadian Dollar and Business Outlook: Loonie up, crude oil surges

The Canadian dollar continued its rise on Tuesday.

The loonie was at US$0.7412 or US$1=C$1.3492 as of 8:34 a.m. CDT, compared to US$0.7402 or US$1=C$1.3510 on Monday. The United States Dollar Index was down 0.12 of a point at 100.73.

Crude oil rallied after China announced an economic stimulus package that includes a 50 basis point cut to banks’ reserve requirements, more easing in lending rates and property market support measures. The Chinese yuan hit a 16-month high earlier today.

Brent crude oil rose US$1.63 at US$75.53 per barrel. West Texas Intermediate (WTI) jumped US$1.69 at US$72.06/barrel.

The TSX/S&P Composite Index added 65.69 points at 23,960.40.

Gold advanced US$5.00 per ounce at US$2,657.50.