Loonie Rises as US Dollar Falters Amid Ongoing Global Tensions
The Canadian dollar strengthened on Wednesday due to its relative weakness compared to the US dollar. The loonie closed at US$0.7130 or C$1=US$1.4026, a slight improvement from Tuesday's close of US$0.7108 or C$1=US$1.4068.
The US Dollar Index fell 0.15 of a point to 99.71, contributing to the loonie's gain. Crude oil prices also had an impact on the Canadian dollar, although they were slightly lower after reports of a new deal to reopen the Strait of Hormuz and ongoing tensions in the Middle East.
The TSX/S&P Composite Index reached another all-time high at 36,443.29 before closing at 36,146.42 for a gain of 344.82 points. This surge was likely due to optimism surrounding the Middle East situation, which also drove gold prices up US$155.70 per ounce to US$4,308.30.