By Commodity News Service Canada
WINNIPEG, Feb. 4 – The Canadian dollar was weaker Wednesday morning, seeing a correction after rallying sharply relative to its US counterpart on Tuesday.
At 9:13 CST Wednesday morning the Canadian dollar was at US$0.7970 or C$1.2547 which compares with Tuesday’s North American close of US$0.8067, or C$1.2396.
Losses in crude oil contributed to the softer tone in the energy-linked Canadian dollar, according to participants. The declines in crude oil were tied to increasing US stocks.
In domestic data, Canada’s Ivey Purchasing Managers Index came in at 45.4 in January, which was its lowest level in nearly four years and compares with 55.4 the previous month. A number below 50.0 is seen as a sign that the industry is contracting.
Updated North American employment data will be released on Friday. Trade data will be released on Thursday.
The TSX was weaker in early activity, down 81.01 points at 9:13 CST to sit at 14,981.76.
