By Commodity News Service Canada
Winnipeg, June 19 The Canadian dollar was higher on Thursday morning, as the U.S dollar weakened after the Federal Reserve reassured traders that there is little concern of inflation.
At 9:20 CDT Thursday morning, the Canadian dollar rose to US$0.9235 or US$ = C$1.0870, up from Wednesday’s close of US$0.9207 or US$ = C$1.0865.
Markets had been prepared for a more hawkish stance from the U.S. central bank, traders say. The Fed barely increased its inflation estimate, indicating that it doesn’t feel the rising pressure to raise short-term interest rates.
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The U.S. Federal Reserve also announced that it will cut its monthly bond purchases by US$10 billion in July, citing an improving U.S. job market.
Violence in Iraq continues to climb over the control of Iraq’s largest oil refinery. Analysts say that all of the facility’s output is used domestically so crude oil production and exports are not affected but violence accentuates how the political unrest threatens the energy infrastructure that Iraq is rebuilding to meet global demand.
July crude oil contracts fell 21 cents to US$105.76 a barrel. August gold bullion grained $14.30 to US$1,287 an ounce. July copper remained the same at US$3.06 a pound.
The TSX was down 17,28 points to sit at 15,091.97 at 9:20 CDT Thursday morning.
