Sunday, October 4th5.4°C

Canadian dollar rises slightly amid U.S. strength, mixed commodities

TORONTO - The Canadian dollar climbed more than half a cent Wednesday amid reports showing a strengthening of the U.S. economy and anticipation of possible action from China's leaders to encourage growth.

The Canadian dollar gained 0.61 of a cent to 90.22 cents US.

The U.S. Commerce Department reported that orders to factories for durable goods rose in February by the most in three months, but a key category that reflects business investment fell 1.3 per cent, the second setback in three months.

It's believed that the weakness in business investment may have been due to severe winter weather conditions in the United States last month, which may have caused some to put modernization and expansion plans on hold.

Overall, orders for durable goods rose 2.2 per cent after a 1.3 per cent drop in January. The increase was driven mainly by a surge in orders for commercial aircraft, a category that tends to fluctuate sharply from month to month.

Joel Naroff, chief economists at Naroff Economic Advisors, said he expects economic growth to slow sharply in the January-March quarter, reflecting the disruptions caused by the harsh weather, before recovering in coming months.

"The rebound could be huge once spring actually appears," Naroff said.

Overseas, European Central Bank president Mario Draghi said Tuesday that monetary policy should support the economies of countries that use the euro.

"This is a clear sign that the ECB will continue to hold its finger over the rates button," IG strategist Evan Lucas said in a commentary.

"The bank is looking to find a way to chase out funds locked up in wealth products that will then be redirected to areas of the economy that are looking for growth funding."

Meanwhile, investors are anticipating that Chinese leaders will introduce stimulus measures after a preliminary reading of China's manufacturing, released Monday, showed activity at an eight-month low in March.

Last week, the Canadian dollar was under pressure as the U.S. Federal Reserve said it could start raising short-term interest rates as soon as next year. At the same time, Bank of Canada governor Stephen Poloz said interest rate hikes in Canada could be further away than first thought.

Commodities were higher as May crude on the New York Mercantile Exchange climbed $1.07 to US$100.26 a barrel.

June bullion fell $8 to US$1,303.40 an ounce while May copper dipped four cents to US$2.97 a pound.

The Canadian Press

Read more Business News


Recent Trending

Today's Market
S&P TSX13339.74+97.85
S&P CDNX525.56-0.33
S&P 5001951.36+27.54
CDN Dollar0.7602+0.0057
Natural Gas2.47+0.04

Okanagan Companies
Pacific Safety0.215+0.000
QHR Technologies Inc1.19+0.01
Metalex Ventures0.06+0.00
Russel Metals21.48-0.07
Copper Mountain Mining0.42+0.03
Colorado Resources0.08+0.01
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.095+0.005
Decisive Dividend Corp3.49+0.45
Diamcor Mining0.90+0.02


24444543405 17th street
4 bedrooms 2 baths
more details
Click here to feature your property
Please wait... loading

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

Collateral mortgage

Photo: Thinkstock.comMost of the time I recommend that my clients not take a collateral type mortgage product, as it locks you in with the current lender and at maturity the mortgage is costly to tran...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council