Canadian Financial Close: C$ Increases Despite Looming Deficit

By Commodity News Service Canada

WINNIPEG, February 22 – The Canadian dollar rose against its US counterpart Monday, taking strength from gains in crude oil. A lack of domestic data exaggerated the influence of higher oil prices on the loonie, according to a report.

However, the dollar felt some resistance after Canadian Finance Minister Bill Morneau announced the country would see an C$18.5 billion deficit in the upcoming budget.

The Canadian dollar closed at US$0.7293 or US$1 = C$1.3712.

The Standard & Poor’s/TSX Composite Index posted gains Monday, following crude oil higher while shrugging off losses in the gold sector. Suncor Energy traced the path of least resistance higher to a 3.1% gain.

The S&P/TSX Composite Index rose 32.23 points, or 0.25%, to 12,845.63.

Canada’s agricultural sector performed as follows:
AGT Food and Ingredients—–dn $ 0.21 at $ 36.55
Agrium Incorporated———-up $ 0.39 at $113.34
Buhler Industries————– $ 0.00 at $ 5.03
Maple Leaf Foods————-dn $ 0.24 at $ 23.13
Potash Corp. of Sask———dn $ 0.02 at $ 22.04

(All figures are in Canadian dollars.)