Friday, July 25th22.4°C
22663
22455

Canadian dollar lower amid rising Ukraine tensions; traders look to key data

TORONTO - The Canadian dollar closed lower Friday as traders looked to worsening tensions in Ukraine and ahead to a slew of important economic data coming out next week.

The loonie slipped 0.07 of a cent to 90.61 cents US as traders looking for safety bought up U.S. Treasuries and the yield on the benchmark 10-year bond dipped to 2.67 per cent from 2.68 per cent late Thursday.

There were scattered reports of violence Friday as Ukraine forces try to end an occupation of government buildings by pro-Russian militia in more than 10 cities in eastern Ukraine. In turn, Russia’s Foreign Minister has accused the West of plotting to control Ukraine and also announced military exercises near Ukraine’s border.

And late Friday afternoon, Ukraine’s deputy foreign minister said he feared an imminent Russian invasion. Danylo Lubkivskye spoke as an official in Ukraine confirmed that pro-Russian forces had detained a team of military observers with the Organization for Security and Co-operation in Europe.

At the same time, the economic cost to Russia for its stance toward Ukraine increased as Standard & Poor’s cut Russia’s credit rating to BBB-minus. The rating is one step above speculative or non-investment grade and down from the previous BBB rating.

S&P said it took the step because the tense situation "could see additional significant outflows of both domestic and foreign capital from the Russian economy."

In other developments, the Russian central bank increased its key rate to 7.5 per cent from seven per cent.

The coming week will see a string of top-drawer economic reports, including the latest gross domestic product data for Canada and the U.S. The latest official reading on Chinese manufacturing will also be released and, on Friday, the U.S. government releases its non-farm payrolls report for April.

The drop in the loonie on Friday followed a slight rise Thursday amid a positive outlook for exports and comments from Bank of Canada governor Stephen Poloz that Canadians should expect cheap borrowing costs to last for years even after the central bank gets around to hiking interest rates.

On the commodity markets, June crude in new York gave back $1.34 to US$100.60 a barrel.

Geopolitical worries drove gold June bullion up $10.20 to US$1,300.80 an ounce, while May copper was unchanged at US$3.12 a pound.

The Canadian Press


Read more Business News

22447


Recent Trending




Today's Market
S&P TSX15455.04+60.59
S&P CDNX1017.445.79
DJIA16960.57-123.23
Nasdaq4449.564-22.543
S&P 5001978.34-9.64
CDN Dollar0.9247+0.0002
Gold1294.80+4.2001
Oil104.30-0.29
Lumber326.00+0.20
Natural Gas3.783-0.064

 
Okanagan Companies
Pacific Safety0.185-0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07-0.01
Anavex Life Sciences0.275-0.005
Metalex Ventures0.08+0.01
Russel Metals35.36-0.21
Copper Mountain Mining2.820.00
Colorado Resources0.21+0.005
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.19+0.01

 



22567

FEATURED Property
2005957112-3535 Casorso Road
3 bedrooms 1 baths
$102,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...

_








Member of BC Press Council


22758