WINNIPEG, Dec. 4 (MarketsFarm) – The Canadian dollar was stronger at market close on Wednesday, spurred by continued OPEC production cuts and by positive comments from the Bank of Canada.
The loonie finished the day at US$0.7563 or US$1=C$1.3223, which compares with Tuesday’s close of US$0.7518 or C$1.3302.
Benchmark oil prices were higher on Wednesday, as OPEC’s Middle East members agreed to continue production cuts passed March 2020. The cartel’s major ally, Russia, has yet to agree with the cuts.
Brent crude oil jumped US$2.23 to close at US$63.05 per barrel, and West Texas Intermediate (WTI) leapt US$2.28 at US$58.38 per barrel.
Western Canadian Select crude, jumped US$3.12 close at US$37.54 per barrel. The increase was also fueled by Canadian Natural Resources announcing it will spend an additional C$250 million on drilling conventional oil wells in Alberta next year.
Stephen Poloz, the governor of the country’s central bank, said on Wednesday that its key interest rate will remain at 1.75 per cent. Poloz also said the Canadian economy is resilient and the global economy is stabilizing.
Despite the positive signs, the TSX/S&P Composite Index finished flat on Wednesday with a small gain of 5.16, closing at 16,897.34 points.
Gold dropped back US$3.90 on Wednesday, closing at US$1,480.50 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Industries unchanged at $ 3.60
Linamar Corp. up $ 0.14 at $ 44.50
Maple Leaf Foods up $ 0.18 at $ 24.21
Nutrien Ltd. up $ 0.11 at $ 61.58
Ritchie Bros Auctioneers Inc. dn $ 0.02 at $ 57.66
Rocky Mountain Dealerships Inc. dn $ 0.12 at $ 6.51
(All figures are in Canadian dollars.)