Thursday, October 2nd9.9°C
22738
22746

Loonie up amid positive export outlook, prospect of continuing low rates

TORONTO - The Canadian dollar closed little changed Thursday amid comments from the governor of the Bank of Canada that Canadians should expect cheap borrowing costs to last for years even after the central bank gets around to hiking interest rates.

The loonie moved up 0.03 of a cent to 90.68 cents US as traders also digested a positive outlook for exports.

Stephen Poloz told a business group in Saskatoon that the Canadian economy has room to grow but even when it returns to full capacity, likely sometime in early 2016, it won’t take a big adjustment in interest rates to keep inflation in check.

The Bank of Canada has left its key rate at one per cent since September 2010.

Meanwhile, Export Development Canada says renewed strength in the United States and in emerging markets, along with a lower loonie, will trigger a rebound in the lagging export sector, particularly in automobiles, building materials and appliances.

EDC chief economist Peter Hall says the volume of shipments will likely start taking off in the second half of this year and expand to 5.8 per cent growth in 2015.

Hall says the pickup in exports might have happened sooner but for the U.S. government shutdown in October and the unusually harsh weather throughout the winter.

Oil and gold prices advanced amid rising tensions between Ukraine and Russia.

June crude in New York was up 50 cents to US$101.94 a barrel while June gold bullion advanced $6 to US$1,290.60 an ounce.

Trading was cautious after Russia's defence minister announced new military exercises in Russia’s south and west in reaction to mounting unrest in eastern Ukraine and NATO exercises in Poland. That development came just hours after Ukrainian troops killed at least two pro-Russia insurgents in eastern Ukraine, leading Russian President Vladimir Putin to threaten Kyiv with unspecified consequences.

May copper ran up six cents to US$3.12 a pound.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14805.44-155.069
S&P CDNX896.35-12.94
DJIA16804.71-238.19
Nasdaq4422.085-71.305
S&P 5001946.16-26.13
CDN Dollar0.9005+0.0049
Gold1215.10-0.40
Oil88.03-1.08
Lumber344.10+6.30
Natural Gas4.046+0.023

 
Okanagan Companies
Pacific Safety0.135+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.22-0.04
Cantex0.075+0.01
Anavex Life Sciences0.1804-0.0036
Metalex Ventures0.0550.00
Russel Metals34.68+0.11
Copper Mountain Mining2.29-0.13
Colorado Resources0.16-0.005
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.31-0.01

 





FEATURED Property
19874095945 Hwy 33
$279,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_








Member of BC Press Council


22771