WINNIPEG – The Canadian dollar climbed higher on Wednesday after a surprising announcement from the Bank of Canada (BoC).
The loonie closed at US$0.7372 or US$1=C$1.3565, up from US$0.7332 or US$1=C$1.3638 on Tuesday. The BoC announced on Wednesday it raised the key interest rate by 50 basis points to 3.75 per cent in an effort to combat inflation. However, many economists had expected a 75 basis point increase.
The United States Dollar Index continued its recent fall, dropping 1.25 points at 109.70.
Crude oil prices jumped on Wednesday after the Energy Information Administration reported the U.S. exported a record amount of fuel and crude oil last week. Already low gasoline stockpiles and East Coast diesel inventories were depleted even further. Brent crude oil rallied US$2.44 per barrel to US$95.96. West Texas Intermediate (WTI) crude oil gained US$2.85 at US$88.17/barrel. Western Canadian Select (WCS) rose US$2.34/barrel to US$60.36.
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The TSX/S&P Composite Index gained 182.75 points to 19,279.76.
Gold increased US$3.90 at US$1,658.00 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Ind. dn $ 0.10 at $ 1.71
Farmer’s Edge Inc. up $ 0.02 at $ 0.52
Linamar Corp. up $ 0.56 at $ 57.63
Maple Leaf Foods up $ 0.40 at $ 20.45
Nutrien Ltd. dn $ 1.82 at $111.32
Ritchie Bros Auctioneers Inc. dn $ 0.47 at $ 86.84
(All figures are in Canadian dollars.)
