Tuesday, September 23rd14.4°C
23284
22501

Loonie pulls back further as Chinese manufacturing data gives little optimism

TORONTO - The Canadian dollar pulled back further Thursday amid concerns about weakness in China's economy and recent comments from the Bank of Canada.

The dollar closed 0.09 of a cent lower at 90.10 cents US after a decline of nearly a full cent on Wednesday. Earlier in the session, it traded as low as 89.35 cents US, the first time since mid-2009 that the loonie has been below the 90-cent US mark.

Results of HSBC's preliminary survey of Chinese factory purchasing managers in January fell below the level indicating expansion for the first time since July. The report came days after data showed China's economy slowed in the final quarter of 2013.

Investors are concerned it could signal a greater shift in the Chinese economy, which would likely affect exports from Canada.

In commodities, the March crude oil contract on the New York Mercantile Exchange gained 59 cents to settle at US$97.32 a barrel, its highest level this year.

February gold bullion rose $23.70 to US$1,262.30 an ounce.

The Canada's dollar has come under increasing scrutiny since the Bank of Canada's latest reading on the economy on Wednesday.

The central bank said it expects the loonie to remain strong and "continue to pose competitiveness challenges for Canada's non-commodity exports."

It stopped short of calling the currency overvalued, as it left its key interest rate unchanged at one per cent. The central bank also noted that inflation has been lower than expected and won't return to its ideal target of two per cent until 2016.

"The depreciation in the Canadian dollar is expected to exert upward pressure on retail prices in a number of categories over the next few years," Derek Burleton, vice-president and deputy chief economist at TD Bank (TSX:TD), said in a note.

"A weaker Canadian dollar raises the prices we pay for imported goods, and these cost increases filter through to the consumer level to varying degrees."

Note to readers: This is a corrected story. An earlier version wrongly said the Canadian dollar traded Thursday morning at its lowest level in more than six years.

The Canadian Press


Read more Business News

23015


Recent Trending




Today's Market
S&P TSX15152.63+23.63
S&P CDNX925.56-2.53
DJIA17130.30-42.38
Nasdaq4529.657+1.968
S&P 5001990.89-3.40
CDN Dollar0.9036-0.002
Gold1223.30+5.40
Oil91.50-0.91
Lumber329.50+2.90
Natural Gas3.924+0.016

 
Okanagan Companies
Pacific Safety0.16-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.29+0.02
Cantex0.05+0.01
Anavex Life Sciences0.2039-0.0156
Metalex Ventures0.055+0.005
Russel Metals34.77-0.60
Copper Mountain Mining2.41+0.01
Colorado Resources0.160.00
ReliaBrand Inc0.0206-0.0043
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.270.00

 



22831

FEATURED Property
2059052SPALLUMCHEEN/ARMSTRONG
3 bedrooms 1 baths
$265,000
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...

_





23448


Member of BC Press Council


22632