By Commodity News Service Canada
WINNIPEG,June 15 (CNS Canada) The Canadian dollar weakened slightly against its US counterpart Wednesday morning amid uncertainty over the looming referendum for Britain’s possible exit from the European Union (Brexit).
Unanswered questions are raising concerns among investors, causing a selloff in stocks. Investors worry a vote in favour of a Brexit could undermine trade within the region at a time when the global economic recovery is already uneven.
Lower chances of an interest rate hike also strengthened the US dollar, working against the loonie.
The US Federal Open Market Committee (FOMC) will release its policy statement at 1:00 p.m. CDT on Wednesday after a two-day meeting. Traders estimate a less than 40 per cent chance of an interest rate hike until December.
At 8:45 CDT Wednesday, the Canadian dollar was at US$0.7757 or US$=C$1.2892, which compares with Tuesday’s North American close of US$0.7780 or US$1=C$1.2853.
The TSX was up 30.94 points, or 0.30 per cent, at 8:45 CDT Wednesday morning to sit at 13,915.17.
