By Commodity News Service Canada
WINNIPEG, March 15 – The Canadian dollar was stronger against its US counterpart on Wednesday, propped up by strength in the crude oil market.
Crude futures advanced on Wednesday, following an announcement from the International Energy Association. The IEA says the market could create a deficit, if OPEC (Organization of the Petroleum Exporting Countries) maintains its output cut to June, when the deal is set to expire.
That news was bullish for the commodity-linked Canadian dollar.
However, gains were kept in check as the US Federal Reserve is expected to raise interest rates as its policy meeting wraps up on Wednesday, supporting the greenback.
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The US Federal Reserve started its two-day policy meeting on Tuesday, which underpinned the greenback as many investors expect an interest rate increase to follow.
At 9:20 CDT Wednesday, the Canadian dollar was at US$0.7430 or US$=C$1.3459, which compares with Tuesday’s North American close of US$0.7416 or US$1=C$1.3484.
In Canadian domestic data, February home resales increased by 5.2 per cent from a month earlier, while prices were up 16 per cent from year-ago levels, data from the Canadian Real Estate Association said.
The TSX was up 64.36 points at 9:20 CDT Wednesday morning to sit at 15,443.97.
