Glacier FarmMedia — The Canadian dollar was weaker relative to its United States counterpart on Thursday, as an unexpected increase in U.S. wholesale prices lowered expectations that the U.S. Federal Reserve would cut interest rates in September.
The Canadian dollar settled at US$0.7243 or US$1=C$1.3806, which compares with Wednesday’s close of US$0.7264 or US$1=C$1.3767.
Gains in crude oil provided some underlying support for the energy-linked currency. Positioning ahead of talks between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska on Friday was a feature in energy markets, with Trump warning of “severe consequences” if peace in Ukraine is not reached.
West Texas crude oil was up by 2.09 per cent at US$63.96 per barrel.
The TSX Composite Index was down 77.44 points at 27,915.99 points.
