Canadian Dollar and Business Outlook: Loonie down sharply amid crude demand worries

By MarketsFarm

WINNIPEG, Oct. 28 (MarketsFarm) – The Canadian dollar retreated nearly two-thirds of a United States cent Wednesday morning, due to lower crude prices.

As of 8:43 CDT, the Canadian dollar was at US$0.7529 or C$1.3282, compared to Tuesday’s close of US$0.7596 or C$1.3164.

Benchmark crude oil prices were down Wednesday morning as several European countries imposed lockdown restrictions due a surge of reported cases of COVID-19. That has generated fears in the market that a sharp decline in the demand for oil is looming.

Brent crude oil lost US$1.94 at US$39.26 per barrel. West Texas Intermediate (WTI) dropped US$2.15 at US$37.42 per barrel. Western Canadian Select (WCS) slid US$1.89 at US$27.00 per barrel.

At the start of trading, the TSX/S&P Composite Index fell 234.94 points at 15,786.

Gold dropped US$28.13 at US$1,879.86 per ounce.


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