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Canadian Dollar and Business Outlook: Loonie dips after inflation report

Support from lower US dollar, higher oil prices

Compiled by Glen Hallick, MarketsFarm

WINNIPEG, Sept. 15 (MarketsFarm) – The Canadian dollar was relatively steady on Wednesday morning, as the downward pressure from the Statistics Canada report on inflation was largely countered by support from a lower United States dollar and increases in crude oil prices.

As of 8:35 CDT, the Canadian dollar was at US$0.7889 or C$1.2675 compared to Tuesday’s close of US$0.7898 or C$1.2661.

The federal agency said the country’s consumer price index climbed to 4.1 per cent in August from a year earlier. That marked the fifth consecutive month that inflation topped the Bank of Canada’s three per cent cap.

On the U.S. Dollar Index, the greenback pulled back 0.114 at 92.500 points.

Benchmark crude oil prices pushed higher Wednesday morning, as U.S. stocks were reported to be lower than expected. The American Petroleum Institute said stocks fell by 5.4 million barrels for the week ended Sept. 10 versus the 3.5 million predicted by analysts.

West Texas Intermediate (WTI) jumped US$1.89 at US$72.35 per barrel. Brent crude oil gained US$1.78 at US$75.38 per barrel. Western Canadian Select (WCS) rose US$1.25 at US$59.86 per barrel.

At the opening the TSX/S&P Composite Index bumped up 38.63 points at 20,591.88.

Gold dropped US$11.40 at US$1,795.70 per ounce.

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