Canadian Financial Close: C$ up as BoC raises rates

By MarketsFarm

WINNIPEG, June 7 (MarketsFarm) – The Canadian dollar was stronger on Wednesday, hitting its highest level in four weeks relative to its United States counterpart in reaction to an interest rate hike from the Bank of Canada.

The Canadian dollar settled at US$0.7476 or US$1=C$1.3376 on Wednesday, which compares with Tuesday’s close of US$0.7452 or US$1=C$1.3419.

The Bank of Canada raised its key overnight rate by 25 points, taking it to 4.75 per cent. That brought interest rates to their highest level in 22 years, with many market participants now expecting another rate hike in July as the BoC works to contain inflation.

West Texas Intermediate was up by 1.0 per cent at US$72.48 per barrel.

The TSX Composite Index was weaker, losing 71.91 points or 0.36 per cent to close at 19,983.69 points.

Canada’s agricultural sector performed as follows:

Buhler Ind.———————-    $ 0.00    at $  2.05

Linamar Corp.——————–up  $ 1.15    at $ 66.37

Maple Leaf Foods—————–dn  $ 0.30    at $ 26.19

Nutrien Ltd.———————up  $ 2.63    at $ 79.33

Ritchie Bros Auctioneers Inc.—-up  $ 0.10    at $ 74.23

Farmers Edge Inc.—————-    $ 0.00    at $  0.1750

(All figures are in Canadian dollars.)