By Commodity News Service Canada
Winnipeg, January 30 – The Canadian dollar was higher against its American counterpart at midday Monday, on the back of advancing oil prices.
The loonie was at US$0.7957 or US$1 = C$1.2567 at 11:50 CST Monday morning.
New data suggested drilling rigs in North America may be slashed by 30 to 40 percent this year which should help support a recovery in oil prices.
Imperial oil has said it will proceed ahead with oilsands projects despite posting a 36% drop in quarterly profits.
The US manufacturing sector reportedly expanded at a slower pace for the third straight month, caused largely by the strength of the US dollar.
On the commodity markets the April crude contract in New York was up US$1.20 at US$49.44 a barrel. The February gold contract dipped US$2.50 to US$1,276.70 an ounce.
At 11:50 CST Monday morning, the Toronto Stock Exchange was up 182.83 points to 14,854.80.
