WINNIPEG – The Canadian dollar closed lower on Wednesday after comments from Russian President Vladimir Putin as well as the United States Federal Reserve’s policy rate increase rattled markets.
The loonie closed at US$0.7464 or US$1=C$1.3397 on Wednesday, down from US$0.7493 or US$1=C$1.3345 on Tuesday.
The United States Dollar Index jumped 1.07 points to 111.29, after Putin announced a partial mobilization of military reservists and threatening to use nuclear weapons.
The Fed raised its key interest rate by 75 basis points today to 3.25 per cent in an effort to combat rising inflation. Many analysts believe that the rate hike will also increase the chances of an economic recession in the near future.
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Crude oil prices were lower on Wednesday as the potential of an economic slowdown outweighed Putin’s comments. Brent crude oil declined US$0.67 per barrel to US$89.95. West Texas Intermediate (WTI) crude oil dropped US$0.87 at US$83.07/barrel. Meanwhile, Western Canadian Select (WCS) was down US$0.29 per barrel to US$62.41.
The TSX/S&P Composite Index fell 184.15 points to 19,184.54.
Gold gained US$11.00 at US$1,682.10 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Ind. unchanged at $ 1.95
Farmer’s Edge Inc. up $ 0.04 at $ 0.82
Linamar Corp. dn $ 1.37 at $ 62.74
Maple Leaf Foods dn $ 0.65 at $ 21.60
Nutrien Ltd. dn $ 0.85 at $119.28
Ritchie Bros Auctioneers Inc. dn $ 0.17 at $ 86.21
(All figures are in Canadian dollars.)
