Canadian Financial Close: Loonie benefits from Fed rate freeze
Greenback hit hard, crude increases
By Glen Hallick
Glacier Farm Media MarketsFarm – The Canadian dollar closed higher on Wednesday, propelled by weakness in the United States dollar and increases in crude oil.
The Canadian dollar closed at US$0.7374 or US$1=C$1.3561, compared to Tuesday’s finish of US$0.7353 or US$1=C$1.3599. On the U.S. Dollar Index, the greenback dropped 0.934 of a point at 102.530.
The U.S. dollar fell hard after the Federal Reserve extended its freeze on its key interest rates. Also, the Fed left open the possibility of three rate decreases of a quarter point each during 2024.
Benchmark crude oil prices swung higher on Wednesday, as the market continued to bounce back and forth between larger global supplies and OPEC+ production cuts.
Brent crude oil advanced US$1.34 at US$74.58 per barrel, and West Texas Intermediate climbed US$1.19 at US$69.80.
The TSX Composite Index surged upward 395.61 points – for the biggest one-day gain since Nov. 2 – to close Wednesday at 20,629.45.
Gold jumped US$46.70 at US$2,039.90 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Industries unchanged at $ 2.22 Farmers Edge Inc. unchanged at $ 0.24 Linamar Corp. up $ 2.11 at $ 60.19 Maple Leaf Foods up $ 0.38 at $ 25.24 Nutrien Ltd. up $ 3.06 at $ 74.60 RB Global Inc. up $ 0.62 at $ 87.17
(All figures are in Canadian dollars)
