Friday, October 9th15.6°C

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 TSX13964.36-14.30
S&P CDNX552.26+5.20
S&P 5002014.89+1.46
CDN Dollar0.7723-0.0001
Natural Gas2.52+0.02

Okanagan Companies
Pacific Safety0.225-0.005
QHR Technologies Inc1.25+0.02
Metalex Ventures0.07+0.02
Russel Metals21.26-0.29
Copper Mountain Mining0.66+0.05
Colorado Resources0.07+0.00
ReliaBrand Inc0.0175+0.0009
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.075-0.005
Decisive Dividend Corp3.25+0.14
Diamcor Mining0.97+0.03



2270159750 Pinehaven Court
10097899 bedrooms
more details
Click here to feature your property
Please wait... loading

Income for life?

Photo: Thinkstock.comIn almost every conversation I have with clients these days, the topic swings to interest rates. What direction they’re going, how long will they stay where they are and how...

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

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