Loonie jumps as oil prices slightly recover; U.S. stocks higher at open
The Canadian dollar was higher against the greenback, as oil recovered after hitting multi-week lows.
USD/CAD hit 1.2997 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2993, falling 0.36%.
Earlier, September crude oil hit a session low of $46.70 a barrel, the weakest since March 24, before regaining ground to trade at $47.31 during U.S. morning hours, down 8 cents, or 0.17%.
On Monday, Nymex oil futures dropped 75 cents, or 1.56%, to close at $47.39 as ongoing worries over high domestic U.S. oil production weighed.
According to industry research group Baker Hughes, the number of rigs drilling for oil in the U.S. rose by 21 last week to 659, the most since May.
Market participants now awaited fresh weekly information on U.S. stockpiles of crude and refined products to estimate the strength of demand in the world’s largest oil consumer.
Elsewhere in the U.S., the Case-Shiller home-price index for May signaled that home prices rose
1.1% but after seasonal adjustments, the reading showed a decline of
0.2%. Home prices in May were up 4.9% from a year earlier, slightly
slower than April’s annual growth of 5%.
In the stock market, the Dow Jones Industrial Average climbed 38 points, or 0.2%, to 17,476, while the S&P 500 index rose 6 points, or 0.3%, to 2,074. The Nasdaq Composite Index added 5 points, or 0.1%, to 5,045.
