Loonie dips as oil retreats, U.S dollar advances

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Toughness in the U.S. dollar and weaker oil prices sent the Canadian dollar lower on Thursday. (Jonathan Hayward/The Canadian Push)

The Canadian dollar was lower today amid a drop in the price of oil, a handful of with a higher U.S. dollar.

In early afternoon foreign exchange trade in trading Thursday, the loonie dropped 0.54 of a U.S. cent to 76.25 cents. The day previous to, the loonie lost 0.71 of a U.S. cent.

The loonie is closely tied to the value of oil, and the price of benchmark North American crude dropped was off 46 cents at $47.73 US per barrel in at cock crow afternoon trading. Oil futures had been down more than $1 earlier in the day.

“The ranking factor weighing on prices is the much appreciated U.S. dollar,” Carsten Fritsch, analyst at Commerzbank, confirmed Reuters.

“What is more, rain forecast in the Canadian oil province of Alberta is y rise to hopes that the devastating wildfires there could be featured under control.”

Oil was lower after the U.S. Energy Information Administration said Wednesday that uncivil inventories unexpectedly rose by 1.3 million barrels to 541.3 million barrels for the week ended May 13.

The U.S. dollar progressed strength and stock markets sold off as investors digested the possibility of a June engagement rate hike by the U.S. Federal Reserve.

The Dow Jones industrial average flatten 154 points to 17,371. The Standard & Poor’s 500 lost 18 thrust to 2,029, and the Nasdaq composite fell 52 points to 4,686.

On Bay Street, the S&P/TSX composite factor was off by 84 points at 13,741.

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