Sunday, September 21st21.6°C
23284
22285

Canadian dollar drops nearly a cent after Bank of Canada rate decision

TORONTO - The Canadian dollar pulled back nearly a full cent after the Bank of Canada's decision to keep its key interest rate steady while lowering its forecast for inflation.

The loonie dropped 0.95 of a cent to settle at 90.19 cents US.

The central bank said inflation has been lower than expected and won't return to its ideal target of two per cent until 2016 — even though the domestic economy has shown signs of improvement.

Both competition in the retail industry and a lack of significant economic growth were cited as reasons for inflation remaining below target.

The commentary added pressure to the Canadian currency, which has already lost more than three cents U.S. since the end of 2013.

Disappointing trade and employment data has coupled with pressure from the U.S. dollar, which has risen as the U.S. Federal Reserve starts to cut back on its key stimulus measure, the massive monthly bond purchases that have kept long-term rates low.

"As expected, the (Bank of Canada) statement retains a broadly dovish flavour, although the bias as before remains broadly balanced between a possible rate reduction and potential increase," CIBC economist Peter Buchanan wrote in a note.

In commodities, the February gold bullion contract slipped $3.20 to US$1,238.60 an ounce.

The March crude oil contract on the New York Mercantile Exchange gained $1.76 to US$96.73 a barrel.

The Canadian Press


Read more Business News

23480


Recent Trending




Today's Market
S&P TSX15265.35-200.19
S&P CDNX955.06-10.73
DJIA17279.7413.75
Nasdaq4593.426-13.637
S&P 5002010.40-0.96
CDN Dollar0.9116-0.0005
Gold1216.60-10.00
Oil92.41-0.62
Lumber329.00-0.90
Natural Gas3.903-0.064

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.37+0.05
Cantex0.05-0.01
Anavex Life Sciences0.223-0.0031
Metalex Ventures0.060.00
Russel Metals35.75-1.26
Copper Mountain Mining2.66-0.02
Colorado Resources0.165-0.01
ReliaBrand Inc0.0249+0.0009
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.29-0.01

 



22689

FEATURED Property
2060440319 - 3996 Beach Avenue
2 bedrooms 2 baths
$398,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


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...

_








Member of BC Press Council


22755