By MarketsFarm
WINNIPEG, June 6 (MarketsFarm) – The Canadian dollar posted modest gains relative to its United States counterpart on Tuesday, with positioning ahead of Wednesday’s Bank of Canada interest rate announcement behind some of the activity.
The Canadian dollar settled at US$0.7452 or US$1=C$1.3419 on Tuesday, which compares with Monday’s close of US$0.7444 or US$1=C$1.3434.
The Bank of Canada is set to make its next interest rate decision on Wednesday. While most investors are still expecting the Bank will hold its key overnight rate steady at 4.50 per cent, a surprise increase in Australian rates heightened expectations that Canada could also raise rates by 25-basis points.
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Canadian municipalities issued C$9.6 billion worth of building permits in April, which was down by 18.8 per cent from the previous month and the lowest level since December 2020, according to a report from Statistics Canada.
While the recent announcement from Saudi Arabia that it would cut oil production remained somewhat supportive for crude oil, concerns over weakening global demand put a damper on the upside and crude prices moved lower, with West Texas Intermediate down by 0.9 per cent at US$71.49 per barrel.
The TSX Composite Index was stronger, up by 123.98 points or 0.62 per cent to close at 20,055.60 points.
Canada’s agricultural sector performed as follows:
Buhler Ind.———————- $ 0.00 at $ 2.05
Linamar Corp.——————–up $ 1.50 at $ 65.22
Maple Leaf Foods—————–up $ 0.50 at $ 26.49
Nutrien Ltd.———————up $ 2.28 at $ 76.70
Ritchie Bros Auctioneers Inc.—-up $ 1.21 at $ 74.13
Farmers Edge Inc.—————-dn $ 0.01 at $ 0.1750
(All figures are in Canadian dollars.)
