Thursday, September 3rd7.5°C
27106

Loonie lower ahead of rate announcement;greenback rises on China nervousness

TORONTO - The Canadian dollar closed lower Tuesday, a day ahead of the Bank of Canada's latest announcement on interest rates.

The currency fell 0.2 of a cent to 91.1 cents US with no change expected in key rates.

"We see no move in the bank's official bias (still firmly neutral) or in the overnight rate target (expected to remain pegged at one per cent as it has since September 2010) but a modestly less dovish tone," said Mark Chandler, head of Canadian FIC strategy at RBC Dominion Securities.

The bank also delivers its latest Monetary Policy Report on Wednesday followed by a news conference by governor Stephen Poloz.

Meanwhile, the U.S. dollar gained amid nervousness centred on China as lending data showed a tightening of credit growth.

Money supply growth climbed just 12.1 per cent year-over-year in March, the slowest pace in 17 years.

And that slowing in credit growth raised fresh worries about economic growth in the world’s second-biggest economy. There are worries that gross domestic product growth may fall below seven per cent in the current year, a full 0.5 of a percentage point below the government's target for growth. Official growth figures for China will be released Wednesday.

The rising U.S. dollar helped depress commodity prices. A stronger greenback makes it more expensive for holders of other currencies to buy oil and metals, which are dollar-denominated.

May crude on the New York Mercantile Exchange fell 30 cents to US$103.75 a barrel.

May copper was down six cents to US$2.99 a pound while June gold bullion fell $27.20 to US$1,300.30 an ounce.

The Canadian Press


Read more Business News

26480


Recent Trending




Today's Market
S&P TSX13702.89+157.64
S&P CDNX554.48+4.43
DJIA16530.23+178.85
Nasdaq4795.52+45.54
S&P 5001972.65+23.79
CDN Dollar0.7587+0.005
Gold1123.80-8.70
Oil47.80+1.55
Lumber234.70+0.70
Natural Gas2.668+0.020

 
Okanagan Companies
Pacific Safety0.20-0.02
Knighthawk0.010.00
QHR Technologies Inc1.21+0.02
Cantex0.04-0.01
Anavex Life Sciences1.14-0.11
Metalex Ventures0.05-0.00
Russel Metals21.55+0.68
Copper Mountain Mining0.66+0.05
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.08-0.01
Decisive Dividend Corp2.40-0.22

 





FEATURED Property
2351827NEW Peachland lake view home!!
$539,000
more details
image2image2
Click here to feature your property
Please wait... loading


Where does the money go?

Photo: Thinkstock.comOne of the major components of business relationships that involve money are the fees in the investment industry. There is currently a quiet battle being waged between the practit...


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...

_



26376




Member of BC Press Council


27373