By Commodity News Service Canada
Winnipeg, May 25 – The Canadian dollar was weaker against its US counterpart at midday Tuesday, as a firmer US dollar and receding oil prices weighed down the loonie.
The loonie was at US$0.8046 or US$1 = C$1.2428 at 11:50 CDT Tuesday morning. Many traders are on the sidelines, waiting to hear from the Bank of Canada tomorrow morning. The bank is expected to keep its overnight target rate at 0.7 percent.
A new report from Scotiabank says measures of risk are increasing which is considered bearish for the loonie.
China’s yuan currency is no longer considered undervalued after recent adjustments to it were made, however the International Monetary Fund still wants it to adopt a floating exchange rate.
On the commodity markets the June crude contract in New York fell US$1.55 to US$58.17 a barrel. The June gold contract dropped US$17.80 to US$1,186.20 an ounce.
At 11:50 CDT Tuesday morning, the Toronto Stock Exchange was n 144.05 points to 15,043.73.
