WINNIPEG – The Canadian dollar is once again on the positive side of the 80 cents United States mark on Wednesday hours after the Bank of Canada announced the key interest rate was staying as is.
The loonie was at US$0.8002 or US$1=C$1.2497 on Wednesday, down from Tuesday’s close at US$0.7991 or US$1=C$1.2514. Canada’s central bank announced earlier in the day that while it was keeping the key interest rate at 0.25 per cent, the bank is also reducing its weekly purchases of government debt to C$2 billion.
Read Also
Canadian dollar and business outlook
Glacier FarmMedia — The Canadian dollar was softer Thursday morning, as the United States currency saw some strength internationally. Talk…
Meanwhile, the United States Dollar Index was down 0.39 points at 92.36 after U.S. Federal Reserve chair Jerome Powell remarked that inflation was going to be transitory and the Fed will not yet taper off its own bond-buying program.
Following reports that Saudi Arabia and the United Arab Emirates reached a compromise regarding future oil output, benchmark crude oil prices were in freefall on Wednesday. Brent crude oil dropped US$2.02 per barrel to US$74.47. West Texas Intermediate (WTI) crude oil plunged US$2.52 to US$72.73/barrel. Western Canadian Select (WCS) crude oil lost US$2.57 to US$59.58/barrel.
The TSX Composite Index lost 123.41 points to 20,147.24 after the fiscal announcements on both sides of the Canada/U.S. border.
Gold surged US$19.85 per ounce to US$1,827.61, mainly due to Powell’s remarks and inflation fears.
Canada’s agricultural sector fared as follows:
Buhler Industries unchanged at $ 3.27
Farmer’s Edge Inc. dn $ 1.14 at $ 10.46
Linamar Corp. dn $ 0.40 at $ 73.16
Maple Leaf Foods dn $ 0.09 at $ 24.79
Nutrien Ltd. dn $ 0.18 at $ 76.93
Ritchie Bros Auctioneers Inc. dn $ 0.34 at $ 74.18
(All figures are in Canadian dollars.)
