By Commodity News Service Canada
July 25 (CNS Canada) – The Canadian loonie was up slightly early this morning thanks mainly to a weaker U.S. dollar. The combination of a weaker American currency, higher prices for oil and solid economic outlooks pushed the Canadian dollar above 80 cents U.S. yesterday before it fell back to just below that mark prior to close.
The loonie was trading at 80.04 cents U.S. at 8:59 CDT (C$1.2494 per US$1). It closed Monday at 79.92 cents U.S. (C$1.2512 per US$1).
The U.S. Federal Reserve is expected to begin two days of talks today to debate monetary policies and whether it’s time to start selling off assets (mostly bonds) it built up in recent years under the economic stimulus measures. However, it is thought that a sinking U.S. dollar, low inflation, and policy problems in Washington would limit any abrupt changes.
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Oil prices climbed following promises by major suppliers to make more efforts to control production. WTI Crude was at US$47.25 this morning, up 91 cents U.S. for a gain of 1.96 per cent.
Toronto’s S&P/TSX index was up 97.12 points, or .64%, to 15,225.81 at 9 a.m. CDT boosted by early gains in mining and energy stocks.
In New York, the S&P 500 rose 7.32 points (.30%) to 2,477.23, the Dow Jones rose 94.16 points (.44%) to 21,607.33 and the Nasdaq rose .44 points (.01%) to 6,411.25.
