By Commodity News Service Canada
WINNIPEG, August 23 (CNS Canada) The Canadian dollar strengthened against its US counterpart Tuesday morning, correcting higher after plunging with crude oil on Monday.
The US dollar lost ground on Tuesday as investors await more information on whether the US Federal Reserve will raise interest rates this year, providing some additional support to the loonie.
Traders look forward to US Federal Reserve chair Janet Yellen’s speech on Friday at the annual meeting of world central bankers in Jackson Hole, Wyoming.
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Last week Vice Chairman Stanley Fischer hinted the Fed was getting close to its job and inflation targets, earning speculation a rate hike could come as early as September. Investors are anxious to see whether Yellen will echo views expressed by Fischer or take a more patient stance.
Oil prices continued to drop, falling below US$49 a barrel on Tuesday as signs of growing supply outweighed hopes that producing nations will take the necessary steps to support prices, limiting the Canadian dollar’s gains.
At 9:00 CDT Tuesday, the Canadian dollar was at US$0.7739 or US$=C$1.2922, which compares with Monday’s North American close of US$0.7722 or US$1=C$1.2950.
The TSX was up 41.49 points, or 0.28 per cent, at 9:00 CDT Tuesday morning to sit at 14,789.68.
