By Commodity News Service Canada
WINNIPEG, Jan. 14 The Canadian dollar was firmer relative to the US dollar Wednesday morning, underpinned by ideas that recent losses were overdone, analysts said.
At 8:55 CST Wednesday, the Canadian dollar was at US$0.8378 or US$=C$1.1936, which compares with Tuesday’s North American close of US$0.8365 or US$1=C$1.1954.
Though, the Canadian dollar’s strength is likely to be short lived, as weakness in commodities, including crude oil, was undermining the currency Wednesday morning.
Dovish comments from Bank of Canada officials on Tuesday and a forecast calling for slower global economic growth were also bearish, brokers said.
The World Bank expects the global economy will grow only three per cent in 2015, down from its previous estimate of 3.4 per cent expansion, a report from the bank said.
The TSX was down 161.54 points, or 1.14%, at 8:55 CST Wednesday morning to sit at 14,025.62.
