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Loonie surges by more than half a cent as oil makes a comeback

Canadian Press, The Canadian Press
0 Comments| March 26, 2015

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TORONTO _ The Canadian dollar is up more than half a cent and the price of oil has surged to its highest level in nearly two weeks ahead of the open at the Toronto Stock Exchange.

The loonie traded at 80.44 cents, up 0.55 of a U.S. cent from Wednesday's close while a benchmark oil contract was up $2.04 at US$51.25 a barrel, amid heightened geopolitical tension in the Middle East.

Oil prices jumped after Saudi Arabia launched air strikes against rebel-held military installations in neighbouring Yemen. The Saudi government says the intervention is part of a regional effort against Shiite rebels that have ousted Yemen's president.

Gold was also up, as investors looked to a traditional haven in times of uncertainty. The April bullion contract rose $12.80 to US$1,209.80 an ounce, the highest in nearly three weeks.

The Dow Jones industrial futures were down 129 points at 17,520 ahead of today's open while the Nasdaq futures were off 46.20 points at 4,277.30, and the S&P futures declined 14.10 points to 2,039.7.

The S&P/TSX composite index closed Tuesday at 14,929.37, after falling 151.89 points in a broad decline that has also pushed down markets in the United States, Asia and Europe.


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