Canadian Dollar and Business Outlook: Loonie feeling pressure from declining crude prices

By MarketsFarm

WINNIPEG, Sept. 12 (MarketsFarm) – The Canadian dollar was moving downward Thursday morning, as crude oil prices continued to decline.

As of 8:40 CDT, the Canadian dollar was at US$0.7572 or C$1.3206. That compares to Wednesday’s North American close of US$0.7587 or C$1.3181.

Crude oil prices were lower on Thursday morning as the OPEC+ alliance didn’t reach a decision at their summit in Abu Dhabi on further production cuts. Also, the European Central Bank cut its deposit rate from 0.5 per cent to a record low of 0.4 per cent. As well, easing Middle East tensions with a forthcoming meeting later this month between United States President Donald Trump and Iranian President Hassan Rouhani also weighed on values.

Brent crude was down US$1.66 at US$59.15 and West Texas Intermediate crude oil was down US$1.56 at US$54.19 per barrel. Western Canadian Select crude dropped US$1.85 at US$42.16 per barrel.

At the start of trading on Thursday, the TSX/S&P Composite Index was up 21.76 points at 16,632.90.

Gold was up US$16.60 at US$1,513.85 per ounce.


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