The Canadian dollar appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the C$ 1.1820 level and was capped around the C$ 1.2070 level. Commodity-based currencies like the loonie have not fared well as commodities prices, including oil, have come off. NYMEX crude oil futures for February delivery slipped further today and are now trading with a $41 handle. Prime Minister Harper confirmed his minority Conservative government will unveil a budget on 27 January that could include a stimulus package worth as much as C$ 30 billion. Regarding the current global economic pullback, Harper added We're entering the recession later. All the indications are that it will not be as deep here and we should be able to come out of it sooner. U.S. dollar offers are cited around the C$ 1.2210 level.
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