Canadian Financial Close: C$ strengthens Thursday

Glacier FarmMedia | MarketsFarm – The Canadian dollar was stronger on Thursday, as the market reacted to new spending measures announced by the government.

The Canadian dollar settled at US$0.7163 or US$1=C$1.3960 on Thursday, which compares with Wednesday’s close of US$0.7146 or US$1=C$1.3993.

Canada’s Liberal government announced C$6.3 billion in proposed new spending measures to help consumers deal with high prices. The measures, which include a two-month pause on charging GST for some purchases, were seen as lessening the likelihood of an interest rate cut from the Bank of Canada in December.

Canada’s Industrial Product Price Index was up by 1.2 per cent in October compared to the previous month, posting annual gains of 1.1 per cent, reported Statistics Canada. The country’s Raw Materials Price Index was up by 3.8 per cent from September, but still down by 2.8 per cent annually.

Crude oil was firm, with West Texas crude oil up 1.40 per cent at US$70.15 per barrel.

The TSX Composite Index was up by 354.22 points to close at 25,390.68 points.