Loonie Takes a Hit as Crude Oil Prices Continue to Slide

The Canadian dollar took a hit on Tuesday morning, falling back to levels seen over a month ago. As of 8:48 a.m. CDT, the loonie was trading at US$0.7121 or US$1=C$1.4043, down slightly from its previous value of US$0.7132 or US$1=C$1.4021.

The decline in the Canadian dollar comes amidst a broader market trend, with crude oil prices continuing to slide. Brent crude oil lost US$1.48 at US$98.86 per barrel, while West Texas Intermediate retreated US$1.58 at US$94.20/barrel. The drop is attributed to reports that the East-West pipeline in Saudi Arabia, damaged by Iran-backed Houthi rebels, is already pumping at low rates.

Meanwhile, gold prices have also taken a hit, losing US$17.40 per ounce at US$4,366.50. However, the TSX/S&P Composite Index gained 290.35 points at 36,299.75, suggesting some resilience in the market.