Canadian Forex Midday: C$ Strengthens

By Commodity News Service Canada

Winnipeg, May 7 – The Canadian dollar was stronger against its US counterpart at midday Tuesday, slowly getting closer to parity.

At 11:53 CDT Tuesday, the Canadian dollar was trading at US$0.9949, or US$1=C$1.0051, which compares with Monday’s North American close of US$0.9932, or US$=C$1.0068.

The Canadian dollar’s move higher was sparked by positive economic news out of Australia. The Reserve Bank of Australia announced it will cut its interest rate by a quarter percentage point to help stimulate the economy.

News that Tokyo, Japan’s Nikkei index increased more than 3% on Tuesday, finishing at its highest level since 2008, provided further support for the Canadian dollar.

However, some of the selling seen in crude oil and other commodities, including gold, spilled over to weigh on the loonie, limiting its upside potential.

The Toronto Stock Exchange was up 2.58 points, or 0.02%, at 11:53 CDT Tuesday, to sit at 12,456.50.