Canadian Financial Close: Loonie dips, but stays just above 73 cents
Bank of Canada cuts interest rate
By Glen Hallick
Glacier Farm Media MarketsFarm – The Canadian dollar eased back on Wednesday, following the interest rate announcement from the Bank of Canada. The central bank did what most analysts expected with a cut of 25 basis points to its key overnight rate now at 4.75 per cent.
The loonie closed at US$0.7301 or US$1=C$1.3696, compared to Monday’s finish of US$0.7309 or US$1=C$1.3681. On the U.S. Dollar Index, the greenback rose 0.199 of a point at 104.250.
Benchmark crude oil prices were modestly higher on Wednesday as there was optimism towards the U.S. Federal Reserve cutting its main interest rates come September. However, pressure from OPEC+ plans to boost its output put a lid on further increases.
Brent crude oil gained 94 cents at US$78.46 per barrel and West Texas Intermediate was up 89 cents at US$74.14.
The TSX Composite Index added 166.84 points on Wednesday to close at 22.145.02.
Gold jumped US$25.90 at US$2,373.30 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Industries unchanged at $ 2.19 Farmers Edge Inc. unchanged at $ 0.345 Linamar Corp. up $ 0.91 at $ 70.31 Maple Leaf Foods dn $ 0.05 at $ 22.91 Nutrien Ltd. dn $ 1.93 at $ 76.30 RB Global Inc. up $ 0.87 at $ 99.85
(All figures are in Canadian dollars)
