By Commodity News Service Canada
WINNIPEG, Feb. 3 The Canadian dollar was strengthening relative to the US dollar on Tuesday, following a rise in crude oil values, analysts said.
At 8:46 CST Tuesday, the Canadian dollar was at US$0.7973 or US$=C$1.2542, which compares with Monday’s North American close of US$0.7951 or US$1=C$1.2577.
Ideas that the loonie’s recent sharp drop was overdone also helped to underpin the currency.
However, ongoing worries about slow global economic growth and fear that the Bank of Canada will make further cuts to interest rates limited the upside.
Statistics Canada said the Industrial Price Product Index (IPPI) dropped 1.6 per cent in December, due to low prices for energy and petroleum products.
Traders were also looking ahead to Friday, when the latest Canadian and US employment data is set to be released.
The TSX was up 226.99 points, or 1.55%, at 8:46 CST Tuesday morning to sit at 14,900.47.
