Glacier FarmMedia – The Canadian dollar nudged a little higher on Wednesday, after the Bank of Canada and the United States Federal Reserve announced their respective interest rate decisions.
The loonie increased to US$0.7228 or US$1=C$1.38435, compared to US$0.7223 or US$1=C$1.3844 on Tuesday. In meeting analysts’ expectations, the BoC maintained its key rates of 2.25 per cent, while the Fed cut its rates by 25 basis points.
The Fed’s announcement caused the U.S. Dollar Index to drop 0.58 of a point at 98.64.
Crude oil prices were higher due to the Fed’s decision as well as a 4.8-million-barrel draw in U.S. stockpiles. West Texas Intermediate rose US$0.74 per barrel at US$58.99. Brent crude oil was up US$0.75/barrel at US$62.69.
The TSX/S&P Composite Index jumped 246.48 points to close at 31,490.85.
Gold added US$19.60 per ounce at US$4,255.80.
