Pipeline backstop lifts Canadian dollar
USD/CAD down after finance minister announcement on pipeline
The Trans Mountain pipeline has been a major political problem in Canada as protestors try to shut it down and owner Kinder Morgan threatened to walk away.
That would compound the difficulty in getting Canadian oil to the market.
Today, Finance Minister Bill Morneau took off some of the pressure, saying the government would indemnify the company against unnecessary delays in the pipeline expansion.
"We are willing to indemnify the Trans Mountain expansion against unnecessary delays that are politically motivated," Morneau said.
USD/CAD has fallen to 1.2800 from 1.2860 before the announcement.