By MarketsFarm
WINNIPEG, May 29 (MarketsFarm) The Canadian dollar continued its slide on Wednesday morning, ahead of an announcement from the Bank of Canada regarding whether interest rates will be raised or frozen.
At 8:45 CDT Wednesday morning, the Canadian dollar was at US$0.7414 or C$1.3488, which compares with Tuesday’s North American close of US$0.7420 or C$1.3477.
While experts surmised the chance of an interest rate hike is “slim to none”, Canadians may expect rates to increase sometime in the near future.
“Both at home and abroad, there have been plenty of surprises since their last rate announcement,” said Avery Shenfeld, chief economist at CIBC, in a note to Yahoo Finance Canada.
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“Yet, despite all of those changes under the surface, they balance out to the same thing for rates: no reason to signal a cut, nor any reason to bring forward the timetable for a return to rate hikes.”
Crude oil prices dropped following comments that China may restrict rare earth sales to the United States, further prolonging the trade war between the two countries and implying lowered crude demands.
West Texas International was down US$1.23 to hit US$57.91 per barrel, and Brent Crude lost US$1.22 to hit US$68.89.
The TSX lost at 8:45 CDT, down 127.50 points at 16,3169.96. The S&P 500 Index lost 23.67 points to hit 2,802.39. The Dow Jones was unchanged from market close at 25,347.77. The NASDAQ dropped 29.66 to hit 7,607.35.
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