Loonie Dips Below 72 Cent Mark Amid Tariff Announcement
The Canadian dollar declined on Wednesday morning, reaching a low point near the 72 US cent mark. The loonie dropped to US$0.7202 or US$1=C$1.3885 as of 8:38 a.m. CDT, down from Tuesday's close of US$0.7226 or US$1=C$1.3839. This decline comes after Canada announced on Tuesday that it will impose tariffs on C$27.6 billion worth of U.S. goods starting on September 8, with an additional C$7.5 billion in financial support for affected workers.
Crude oil prices also eased further on Wednesday amid reports that Iran and Oman have outlined a joint proposal to establish a temporary shipping lane in the Strait of Hormuz, as well as rid the waterway of mines. Brent crude oil dropped US$1.86 at US$86.72 per barrel, while West Texas Intermediate shed US$1.64 at US$80.72/barrel.
The TSX/S&P Composite Index added 16.85 points to reach 36,974.48, and gold lost US$24.60 per ounce to US$4,669.90.