Tuesday, July 28th25.0°C
26383
26306

Loonie up after sharp declines, traders look to Bank of Canada rate announcement

TORONTO - The Canadian dollar closed higher Thursday as the currency continued to stabilize following a string of sharp declines.

The loonie was up 0.16 of a cent to 91.53 cents US after a flat performance the previous session.

But the currency has slid almost three per cent so far this year amid disappointing trade and employment data and a dovish stance by the Bank of Canada on interest rates.

Also, the U.S. dollar has trended higher as the Federal Reserve starts to cut back on its massive bond purchases which have kept long-term rates low and encouraged a strong rally on equity markets.

The Fed has cut monthly bond purchases by US$10 billion to $75 billion, but says further tapering depends on the strength of the economy, particularly job creation.

Traders are now looking ahead to next Wednesday's Bank of Canada interest rate announcement for further indications of what the central bank might do about rates. There are some analysts who expect the central bank to cut rates this year.

On the commodity markets, February crude on the New York Mercantile Exchange slipped 21 cents to US$93.96 a barrel.

March copper declined two cents to $3.34 a pound while February bullion gained $1.90 to US$1,240.20 an ounce.

On the economic front, the U.S. consumer price index rose a slight 0.3 per cent in December, translating into an annualized rate of 1.5 per cent.

And the U.S. Labor Department said that claims for jobless benefits declined last week by 2,000 to 326,000, which was in line with expectations.

This is the first glimpse of the job market since the release last Friday of disappointing employment data that showed job creation coming in at 74,000, far less than the 200,000 that had been expected.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14077.36+75.99
S&P CDNX586.97+5.25
DJIA17630.27+189.68
Nasdaq5089.21+49.43
S&P 5002093.25+25.61
CDN Dollar0.7734+0.0066
Gold1097.10+0.60
Oil48.21+0.36
Lumber256.90-0.80
Natural Gas2.836+0.047

 
Okanagan Companies
Pacific Safety0.175-0.005
Knighthawk0.010.00
QHR Technologies Inc1.37+0.01
Cantex0.05+0.00
Anavex Life Sciences0.78-0.13
Metalex Ventures0.06-0.01
Russel Metals18.35-1.10
Copper Mountain Mining0.82+0.02
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.15+0.00
Decisive Dividend Corp2.60-0.10

 



25528

FEATURED Property
1389640310-3115 Demontreuil Court
2 bedrooms 2 baths
$250,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_





26509


Member of BC Press Council