By Commodity News Service Canada
WINNIPEG, MB, July 12, 2016 (CNS Canada) The Canadian dollar strengthened against its US counterpart Tuesday morning, supported by rising oil prices and improved global risk assessment.
Eased political tensions in Britain have relaxed investors, and US stocks hitting a record high supported the loonie.
Crude oil rebounded from two-month lows, supported by the weaker US dollar. However, an oil inventory surplus and a drop in bullish bets by investors weighed on prices.
The loonie was also stronger against the yen, which dropped as a weekend election victory by Japan’s ruling coalition made room for more stimulus.
However, the loonie was still weaker against some of its other key currency counterparts, including sterling and the Australian and New Zealand dollars.
At 8:50 CDT Tuesday, the Canadian dollar was at US$0.7674 or US$=C$1.3031, which compares with Monday’s North American close of US$0.7621 or US$1=C$1.3121.
The TSX was up 91.57 points, or 0.64 per cent, at 8:50 CDT Tuesday morning to sit at 14,453.45.
