By Commodity News Service Canada
Winnipeg, March 3 – The Canadian dollar was stronger against the US dollar at midsession Tuesday, reacting to better than expected domestic economic growth data, analysts said.
Statistics Canada reported real gross domestic product (GDP) grew 0.6 per cent in the final quarter of 2014. In December, GDP grew 0.3 per cent, beating expectations of a 0.2 per cent rise.
At 11:43 CST Tuesday, the Canadian dollar was trading at US$0.8024 or US$1=C$1.2463, which compares with Monday’s North American close of US$0.7978 or US$1=C$1.2535.
Expectations that the Bank of Canada will keep interest rates unchanged at their announcement Wednesday were also supportive, as traders first anticipated another interest rate cut.
However, renewed weakness in crude oil values and ongoing worries about the negative effect it will have on Canada’s economy limited the upside.
The Toronto Stock Exchange was down 137.53 points, or 0.90%, at 11:43 CST Tuesday, to sit at 15,126.52.
