By Commodity News Service Canada
WINNIPEG, July 25 (CNS Canada) The Canadian dollar weakened against its US counterpart Monday morning, falling with crude oil prices that are trading near two-month lows.
The US Federal Reserve will begin its two-day policy meeting on Tuesday to decide whether the US economy could handle a rate increase in the near term, weighing on the loonie.
Recent data shows the US economy holding strong, but global uncertainty post-Brexit still lingers, leaving the Fed cautious about any interest rate hikes.
Traders estimate a 14.7 per cent chance of a rate hike in September and 38.5 per cent chance for December, according to CME Group’s FedWatch tool.
At 8:50 CDT Monday, the Canadian dollar was at US$0.7568 or US$=C$1.3214, which compares with Friday’s North American close of US$0.7607 or US$1=C$1.3146.
The TSX was down 55.33 points, or 0.38 per cent, at 8:50 CDT Monday morning to sit at 14,545.33.
