Loonie Loses Ground as Oil Prices Drop Amid Strait of Hormuz Tensions
The Canadian dollar continued its downward trend on Friday, losing almost a quarter of a cent compared to Thursday's close. The loonie finished at US$0.7212 or US$1=C$1.3866. This decline follows the United States Dollar Index's gain of 0.066 points, reaching 98.850.
The oil market also experienced losses, with West Texas Intermediate dropping to US$100.44 per barrel after Iran announced plans to meet with other Persian Gulf states to discuss the Strait of Hormuz. Benchmark crude oil prices fell by US$2.04. Brent crude also declined, losing US$2.83 at US$104.80.
The TSX Composite Index showed some resilience, adding 191.21 points on Friday to close at 35,697.49. The Dow Jones and NASDAQ indices also gained ground, while the S&P 500 rose by 65.28 points. However, gold prices fell, down US$15.80 at US$4,391.50 per ounce.
Ahead of Monday's inflation report from Statistics Canada, analysts surveyed by Reuters predicted that the consumer price index for August would remain unchanged at three percent.