By Commodity News Service Canada
Winnipeg, December 3 – The Canadian dollar was stronger against its American counterpart at midday Wednesday, as Canada’s central bank announced it was keeping the interest rate unchanged at one percent.
The loonie was at US$0.8794 or US$1 = C$1.1371 at 11:55 CST Wednesday morning.
The Bank of Canada noted in its report that sliding oil prices and other economic factors like household debt threaten Canada’s economic recovery. Its forecast was generally considered positive though as it pointed towards an improved US economy as reasons for optimism.
The central bank noted that lower oil prices pose a risk to inflation as well.
On the commodity markets, the February gold contract gained US$10.00 to $1,209.40 an ounce. The January crude oil contract inched up US$0.42 to US$67.30 a barrel.
At 11:50 CST Wednesday morning, the Toronto Stock Exchange was up 126.25 points to 14,746.32.
