By Commodity News Service Canada
WINNIPEG, July 26 (CNS Canada) The Canadian dollar was trading both sides of unchanged relative to its US counterpart Tuesday morning as oil prices continue to decline.
The loonie dropped to C$1.3237 to the greenback, or US$0.7555, hitting its weakest level since late March before slowly starting to climb back up.
The currency has lost more than 2 per cent in July so far, suffering as the price of oil falls back toward US$40 a barrel. Concerns that a rebalancing of the market will be delayed due to excess supply have caused the rally from June to fizzle out.
Investors cautiously await the outcome of the US Federal Reserve’s policy meeting, adding some support to the loonie.
At 8:50 CDT Tuesday, the Canadian dollar was at US$0.7565 or US$=C$1.3219, which compares with Monday’s North American close of US$0.7564 or US$1=C$1.3220.
The TSX was up 47.99 points, or 0.33 per cent, at 8:50 CDT Tuesday morning to sit at 14,546.09.
