Canadian Financial Close: Loonie returns to 79 U.S. cents

By MarketsFarm

WINNIPEG, Jan. 20 (MarketsFarm) – The Canadian dollar was stronger on Wednesday, following the decision by the Bank of Canada not to cut its key interest rate.

The dollar finished at US$0.7901 or US$1.2656, compared to Tuesday’s close of US$0.7852 or US$1=C$1.2735.

Bank of Canada Governor Tiff Macklem kept the rate at 0.25 per cent. Also, he said the central bank has been acquiring financial assets to help keep long-term rates low. However, he suggested the bank could sell off some of those assets when the Canadian economy improves.

Benchmark crude oil prices were mixed Wednesday with support from speculation the new Biden administration adding more stimulus to the country’s economy. However, concerns about the surge of COVID-19 cases impeding global economic growth weighed on values.

Brent crude oil slipped eight cents at US$55.82 per barrel. West Texas Intermediate (WTI) crude oil was up 26 cents at US$53.24/barrel. Meanwhile, Western Canadian Select (WCS) crude oil was down 17 cents at US$39.08/barrel.

The TSX Composite Index was up 57.54 points on Tuesday to finish at 18,014.91.

Gold leapt US$30.10 at US$1,870.30 per ounce.

Canada’s agricultural sector fared as follows:

Buhler Industries unchanged at $ 2.68
Linamar Corp. up $ 1.16 at $ 73.90
Maple Leaf Foods up $ 0.03 at $ 25.86
Nutrien Ltd. dn $ 0.58 at $ 67.46
Ritchie Bros Auctioneers Inc. dn $ 0.09 at $ 79.09
(All figures are in Canadian dollars.)

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