Saturday, November 29th-10.6°C
24124
24058

Canadian dollar makes gains after manufacturing figures show improvement

TORONTO - The Canadian dollar extended its gains on Tuesday as a positive view of the manufacturing sector gave investors some confidence.

The loonie rose 0.19 of a cent at 90.65 cents US, after a report from the Royal Bank suggested that Canadian manufacturers are seeing an improvement in business conditions.

The RBC Canadian Manufacturing Purchasing Managers Index registered 53.3 in March — rising from 52.9 in the previous month. This marks the 12th consecutive month that the PMI has indicated expansion, although a weaker Canadian dollar also increased manufacturers' input costs.

"The strengthening pace of improvement in business confidence in the past two months is encouraging," wrote RBC Economists assistant chief economist Paul Ferley in a note to investors.

"It mirrors the pattern of a number of other indicators in the U.S. and Canada where weak economic readings in the December 2013 to January 2014 period were not sustained."

Ferley says the similarities suggested a "transitory effect" from the bad weather that enveloped much of the winter season in North America this year.

In the U.S., the Institute for Supply Management's manufacturing index rose to 53.7 in March, up from 53.2 in February, as factories continued to rev up following the severe winter storms earlier this year.

Separately, the Commerce Department said construction spending rose by 0.1 per cent in February, after falling by 0.2 per cent in January. That number was in line with investors' expectations.

While it's unlikely the economic data will cause investors to reconsider their cautious growth outlook, it added to comments from the U.S. Federal Reserve on Monday that offered reassurance interest rates would stay low.

Fed Reserve chairwoman Janet Yellen said she thinks the struggling U.S. job market will continue to need the help of low interest rates "for some time."

Yellen had raised concerns that U.S. interest rates may begin to rise sooner than expected when she suggested last month that the Fed could start raising short-term rates six months after it halted its bond purchases.

Most economists expect the quantitative easing program to end this year.

In commodities, the May crude delivery on the New York Mercantile Exchange settled $1.84 lower at US$99.74 a barrel.

May copper was less than a penny higher at US$3.03 a pound while June bullion was down $3.80 to US$1,280 an ounce.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14744.70-177.74
S&P CDNX741.87-13.53
DJIA17828.240.49
Nasdaq4791.63+4.312
S&P 5002067.56-5.27
CDN Dollar0.8756-0.0004
Gold1175.20-21.40
Oil66.15-7.54
Lumber329.40+1.40
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.145-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.07
Cantex0.04-0.005
Anavex Life Sciences0.1998+0.0288
Metalex Ventures0.06+0.02
Russel Metals29.91-0.79
Copper Mountain Mining1.94-0.18
Colorado Resources0.125-0.005
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.05+0.005
Mission Ready Services0.325+0.005

 
23744


23872

FEATURED Property
2121586Bright and Spacious Townhome
$219,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Don't stop dreaming!

On Wednesday evening I drove through the Bow Valley in Alberta. It is my old home town... the first place Jackie and I moved to in 1988 when we emigrated. We ended up setting up home there and living...


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...

_



24185

24156


Member of BC Press Council


22632