Loonie Takes a Hit Ahead of BoC Interest Rate Announcement
The Canadian dollar has been losing ground in recent days, dipping below 72 US cents on Tuesday morning as traders await the Bank of Canada's next interest rate announcement. Analysts expect the BoC to maintain its current rate of 2.25 per cent.
The Loonie, as it's commonly known, was trading at US$0.7198 or C$1=US$1.3892 by 8:38 am CDT on Tuesday. This represents a slight drop from Monday's close of US$0.7212 or C$1=US$1.3866.
The US Dollar Index also rose, up 0.200 of a point at 99.585. Crude oil prices continued to increase due to the escalating tensions between the US and Iran in the region. West Texas Intermediate advanced US$2.48 at US$88.24 per barrel, while Brent crude rose US$2.23 at US$92.72.
The TSX/S&P Composite Index fell by 236.96 points on Tuesday morning to 36,033.52. Gold prices also declined, dropping US$93.9 at US$4,387.60 per ounce.