By Commodity News Service Canada
WINNIPEG, Dec. 3 The Canadian dollar was firmer relative to the US dollar Wednesday morning, reacting to a positive message from the Bank of Canada, analysts said.
While the Bank of Canada will keep interest rates unchanged, they also noted that Canadian inflation has risen by more than expected recently, adding that Canada’s economy is showing signs of a broadening recovery.
“Stronger exports are beginning to be reflected in increased business investment and employment. This suggests that the hoped-for sequence of rebuilding that will lead to balanced and self-sustaining growth may finally have begun. However, the lower profile for oil and certain other commodity prices will weigh on the Canadian economy,” a Bank of Canada statement said.
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At 9:08 CST Wednesday the Canadian dollar was at U.S.$0.8804 or U.S.$=C$1.1358, which compares with Tuesday’s North American close of U.S.$0.8777 or U.S.$=C$1.1394.
A rebound in key commodity prices Wednesday morning, including crude oil and gold, was also helping to lift the Canadian currency.
The TSX was up 98.64 points, or 0.67%, at 9:08 CST Wednesday morning to sit at 14,718.71.
