By Commodity News Service Canada
Winnipeg, April 16 – The Canadian dollar firmed against its US counterpart at midday Tuesday, recovering from Monday’s sharp decline, analysts said.
At 11:56 CDT Tuesday, the Canadian dollar was trading at US$0.9781, or US$1=C$1.0224, which compares with Monday’s North American close of US$0.9752, or US$=C$1.0254.
Strong Canadian manufacturing data provided further support for the value of the loonie. According to Statistics Canada, manufacturing sales increased by 2.6% to C$49.6 billion in February, the biggest advance since July 2011.
However, an announcement from the International Monetary Fund that said the Canadian economy will probably only grow 1.5% in 2013, down from 1.8% in 2012, limited the Canadian currency’s upside potential.
Traders were looking ahead to Wednesday, when the Bank of Canada will make its latest interest rate announcement.
The Toronto Stock Exchange was up 111.59 points, or 0.93%, at 11:56 CDT Tuesday, to sit at 12,116.47.
