Loonie Dips as Crude Oil Prices Plummet Amid Saudi Pipeline Disruption
The Canadian dollar has taken a step back on Tuesday morning, dipping to levels not seen in over a month. As of 8:48 a.m. CDT, the loonie hovered around US$0.7121 or US$1=C$1.4043. This is down from yesterday's rate of US$0.7132 or US$1=C$1.4021.
The decline in the Canadian dollar coincides with a decrease in crude oil prices. Brent crude oil has shed US$1.48 to reach US$98.86 per barrel, while West Texas Intermediate retreated US$1.58 to US$94.20/barrel. This 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.
The TSX/S&P Composite Index, however, gained 290.35 points, reaching 36,299.75. Meanwhile, gold prices lost US$17.40 per ounce to US$4,366.50.