Canadian Dollar and Business Outlook: Loonie eases back ahead of BoC announcement
Second rate cut widely expected
By Glen Hallick
Glacier Farm Media MarketsFarm – The Canadian dollar was lower on Wednesday morning ahead of the next interest rate announcement from the Bank of Canada.
As of 8:38 am CDT, the loonie was at US$0.7256 or US$1=C$1.3784 compared to Tuesday’s close of US$0.7263 or US$1=C$1.3768. On the United States Dollar Index, the greenback was down 0.190 of a point at 103.985.
The BoC is scheduled to reveal its decision on interest rates at 8:45 CDT. Analysts predicted a cut to the central bank’s current rate of 4.75 per cent.
Benchmark crude oil prices were higher on Wednesday after the American Petroleum Institute reported a 3.86 million-barrel draw on U.S. stockpiles.
Brent crude oil added 55 cents at US$81.56 per barrel and West Texas Intermediate gained 69 cents at US$77.65.
Shortly after Wednesday’s open the TSX/S&P Composite Index was flat with a 1.42-point gain at 22,815.17.
Gold rose US$9.60 at US$2,416.90 per ounce.
