Loonie Falls Short as Crude Prices Soar

The Canadian dollar took an unexpected turn on Tuesday, falling below 72 US cents despite the sharp increase in crude oil prices. The loonie finished at US$0.7196 or US$1=C$1.3896 compared to Monday's close of US$0.7212 or US$1=C$1.3866.

The rise in crude oil prices was significant, with West Texas Intermediate surging US$5.12 at US$90.88 per barrel and Brent crude jumping US$4.91 at US$95.40. However, the Loonie failed to benefit from this increase.

The TSX Composite Index also took a hit on Tuesday, tumbling 444.75 points to close at 35,825.73 due in part to a selloff in bonds and spiking crude oil prices.