Canadian Forex Midday: C$ Strengthens

By Commodity News Service Canada

Winnipeg, December 12 – The Canadian dollar was trading at a stronger level at midday Wednesday, as news that the US Federal Reserve announced it will implement new stimulus measures, lifted its value, analysts said.

The Fed announced a program that will have the Fed purchasing US$45 billion in treasuries per month, to replace its current program known as “Operation Twist”.

At 12:04 CST Wednesday, the Canadian dollar was trading at US$1.0173 US$1=C$0.9830, which compares with Tuesday’s North American close of US$1.0140, or US$=C$0.9862.

Advances seen in crude oil, gold and copper prices, also helped to support the value of the Canadian currency at midday Wednesday, analysts said.

Canada’s net foreign debt increased by C$53.7 billion, to C$296.6 billion at the end of the third quarter in 2012, Statistics Canada reported.

The Toronto Stock Exchange was up 53.26 points, or 0.43%, at 12:04 CST Wednesday, to sit at 12,335.62.