Canadian Dollar and Business Outlook: Loonies wiggles back a little

By Glen Hallick

Glacier Farm Media MarketsFarm – The Canadian dollar eased back a pinch on Tuesday morning due to small upticks in the United States dollar and declines in crude oil.

As of 8:36 am CDT, the loonie was at US$0.7263 or US$1=C$1.3769 compared to Monday’s close of US$0.7270 or US$1=C$1.3755. On the U.S. Dollar Index, the greenback bumped up 0.163 of a point at 104.200.

Analysts said they expect the Bank of Canada to cut its key interest rate on Wednesday. The central bank reduced its rate from five to 4.75 per cent in June.

Benchmark crude oil prices were lower on Tuesday morning due to the size of U.S. stockpiles and timid demand from China.

Brent crude oil stepped back 75 cents at US$81.65 per barrel and West Texas Intermediate lost 90 cents at US$77.50.

Shortly after Tuesday’s open the TSX/S&P Composite Index gave up 83.03 33.34 points at 22,789.62.

Gold advanced US$10.50 at US$2,405.20 per ounce.