By MarketsFarm
WINNIPEG, May 31 (MarketsFarm) – The Canadian dollar was lower on Wednesday morning despite Statistics Canada’s latest report on economic growth. Pressure came from gains in the United States dollar and declines in crude oil prices.
As of 8:39 am CDT, the loonie was at US$0.7339 or C$1.3623, compared to Tuesday’s close of US$0.7354 or US$1=C$1.3598. On the U.S. Dollar Index, the greenback added 0.297 of a point at 104.365.
Benchmark crude oil prices were down on Wednesday morning as demand from China was sluggish due to its struggling economy, combined with concerns the U.S. Federal Reserve is on the cusp of more interest rate hikes.
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Brent crude oil was down 86 cents at US$72.68 per barrel and West Texas Intermediate (WTI) shed 68 cents at US$68.78.
StatCan said the country’s gross domestic production grew at an annualized rate of 3.1 per cent in the first quarter of this year, beating the federal agency’s projection of 2.5 per cent.
However, shortly after Wednesday’s open the TSX/S&P Composite Index gave up 114.51 points at 19,625.19.
Gold was up US$4.20 at US$1,981.30 per ounce.
