Canadian Dollar and Business Outlook: Loonie busts through 81 cent mark

Compiled by Glen Hallick, MarketsFarm

WINNIPEG, June 23 (MarketsFarm) – The Canadian dollar continued on its upswing Wednesday morning, as the United States dollar further weakened and crude oil prices pushed higher.

As of 8:44 CDT, the Canadian dollar was at US$0.8154 or C$1.2265 compared to Tuesday’s close of US$0.8093 or C$1.2356.

The loonie’s rise comes despite Statistics Canada’s new report in which retail sales in April dropped 5.7 per cent and were on track to fall 3.2 per cent in May.

Also, there’s speculation that Bank of Canada Governor Tiff Macklem could request additional powers from the federal government as a means to control inflation should it spike.

On the U.S. Dollar Index, the greenback remained well under 92.00 points, slipping 0.136 at 91.615 points.

Benchmark crude oil prices hit two-year highs on Wednesday morning, with another drop in U.S. crude stockpiles just as global demand has been picking up.

West Texas Intermediate (WTI) jumped US$1.17 at US$74.02 per barrel. Brent crude oil gained 99 cents at US$75.80 per barrel. Western Canadian Select (WCS) nudged only two cents higher at US$59.80 per barrel.

At the opening the TSX/S&P Composite Index bumped up 15.32 points at 20,215.97.

Gold was up US$6.50 at US$1,783.90 per ounce.

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