By Commodity News Service Canada
Winnipeg, November 25 – The Canadian dollar was higher on Tuesday as investors rallied behind encouraging data from the US and growing speculation the Bank of Canada might adjust interest rates sooner than expected.
At 8:50 CST Tuesday morning, the loonie was up 0.0038 of a cent to US$0.8898 or US$1 = C$1.1238. Figures from the US show the American economy grew at a faster rate than expected. Growth hit an annualized pace of 3.9 percent during the third quarter.
The Bank of Canada is widely expected to adjust the interest rate sometime next year. However, in its latest Economic Outlook, the Organization of Economic Co-Operation and Development predicts inflation will return to two percent by late 2015. It says the central bank’s key rate will rise after the May increase.
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Traders are also waiting to see if the Organization of Petroleum Exporting Countries will curb production to bolster sagging prices.
On the commodity markets the January crude contract in New York gained $0.21 to US$75.99 a barrel. December copper was little changed at US$3.00 a pound while the December gold contract slid $2.20 to US$1,193.50 an ounce.
At 8:50 CST Tuesday morning, the TSX was up 24.93 points to 15,059.44.
