Glacier FarmMedia – The Canadian dollar improved on Wednesday morning as crude oil prices saw a major selloff.
The loonie was at US$0.7213 or US$1=C$1.3864 as of 8:38 a.m. CDT, compared to Tuesday’s close at US$0.7191 or US$1=C$1.3907. The United States Dollar Index lost 1.20 points at 98.65.
The U.S., Israel and Iran agreed to a two-week ceasefire on Tuesday, hours before the U.S. were to launch a large-scale attack on Iran. One of the conditions of the Pakistan-brokered deal was the re-opening of the Strait of Hormuz during that period. After the announcement, crude oil prices fell dramatically.
April West Texas Intermediate lost US$20.41 at US$92.54 per barrel. May Brent crude oil shed US$18.14 at US$91.13/barrel.
The TSX/S&P Composite Index reacted strongly to the ceasefire, gaining 490.11 points at 33,727.63.
Gold reacted in kind, climbing US$120.30 per ounce at US$4,805.00.
