Friday, September 19th15.8°C
19716
22916

Loonie falls to lowest point since '09

The Canadian dollar fell more than a cent to close at a multi-year low Tuesday as the greenback shot higher on data showing the U.S. trade deficit fell in November to its lowest level in four years.

The greenback also strengthened a day before the release of the minutes from the Federal Reserve meeting last month.

The loonie lost 1.05 cents to 92.83 cents U.S., its lowest close since early November 2009. The currency was further pressured by data showing Canada's trade deficit worsened slightly in November, rising to $940 million from $908 million in October.

The U.S. trade gap dropped 12.9 per cent to US$34.3 billion in November as exports rose 0.9 per cent, aided by a 5.6 per cent rise in petroleum exports. Imports dropped 1.4 per cent.

The underline from the (Canadian) trade report was fairly weak, there wasn't a lot of encouragement within the underlying pieces of the report  "all in all it was taken fairly negatively," said Camilla Sutton, chief currency strategist at Scotiabank Global Banking and Markets.

"And the U.S. number was strong because of the oil side, and having reduced imports just highlights the uncertainties we have in Canada around our own oil sector."

It is a heavy week for economic data with the most closely watched data of the week coming on Friday. Economists forecast that the U.S. non-farm payrolls report will show that about 195,000 jobs were created in December.

The reading will help the U.S. Federal Reserve determine how fast it will cut back on a key stimulus program, its US$85 billion of monthly bond purchases. The central bank said last month it would taper those purchases by $10 billion starting this month.

Analysts suggest that the dollar could rally further if the Fed minutes show strong support by central bank officials at the end of last year to start tapering. Likewise, lukewarm support for tapering could push the U.S. currency lower.

The Canadian Press


Read more Business News

23438


Recent Trending




Today's Market
S&P TSX15465.54+6.66
S&P CDNX965.79-6.72
DJIA17342.5576.56
Nasdaq4605.964+12.539
S&P 5002018.56+7.20
CDN Dollar0.9157+0.0014
Gold1222.90-4.00
Oil92.94-0.13
Lumber349.00+1.00
Natural Gas3.947-0.028

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.07
Cantex0.060.00
Anavex Life Sciences0.2261-0.01
Metalex Ventures0.060.00
Russel Metals37.01+0.64
Copper Mountain Mining2.68-0.05
Colorado Resources0.175+0.005
ReliaBrand Inc0.024-0.003
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.30+0.01

 



22970

FEATURED Property
20645531885 Portland Place
5 bedrooms 3 baths
$464,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...

_








Member of BC Press Council


23096