Saturday, August 30th21.6°C
22663
22998

Canadian dollar closes lower; Fed minutes show central bank mulls exit strategy

TORONTO - The Canadian dollar closed lower Wednesday amid declining metal prices and reassurance from the U.S. Federal Reserve about when it might hike rates.

The loonie was off 0.13 of a cent to 91.62 cents US.

Minutes of the Federal Reserve’s late April meeting showed that officials discussed how to eventually tighten monetary policy and move rates away from near zero, where they've been since the financial crisis of 2008.

The minutes disclosed that a number of Fed officials said it would be important for the U.S. central bank to "communicate still more clearly about the Fed’s policy intentions as the time of the first increase in the federal funds rate moves closer."

Fed chairwoman Janet Yellen noted earlier this month that the U.S. job market remains "far from satisfactory" and inflation below the Fed's target rate. Yellen said that she expects low borrowing rates will continue to be needed for a "considerable time."

On the commodity markets, July crude in New York gained $1.74 to US$104.07 a barrel.

July copper dipped two cents to US$3.12 a pound, while June gold faded $6.50 to US$1,288.10 an ounce.

The economic calendar was light Wednesday, but markets are looking ahead to two major economic reports this week.

The March reading on retail sales comes out Thursday and economists are looking for a rise of 0.3 per cent.

On Friday, markets will look to the latest inflation data and, in turn, what effect the reading could have on the Bank of Canada's interest rate announcement in early June.

"Friday's inflation print will be a core input for judging BoC policy going forward," observed Camilla Sutton, chief FX strategist, managing director, Scotiabank Global Banking and Markets.

"Currently the market is pricing in no chance of an interest rate cut or hike in the next 12-months."

Economists expect the inflation data will show that the consumer price index rose two per cent year-over-year in April, up from the 1.5 per cent reading registered in March.

The Canadian Press


Read more Business News

21336


Recent Trending




Today's Market
S&P TSX15625.73+67.561
S&P CDNX1023.991.62
DJIA17098.4518.88
Nasdaq4580.271+22.577
S&P 5002003.37+6.63
CDN Dollar0.9194+0.0003
Gold1281.70-2.1001
Oil95.96+1.29
Lumber348.40+2.60
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.20+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.08+0.01
Anavex Life Sciences0.25+0.01
Metalex Ventures0.0750.00
Russel Metals36.48+0.09
Copper Mountain Mining2.93+0.02
Colorado Resources0.180.00
ReliaBrand Inc0.10+0.001
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.245-0.005

 



22587

FEATURED Property
18747441200 Rancher Ck. Rd
1 bedrooms 1 baths
$205,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


At the Core: Lessons in pricing from Apple

Apple has taught many entrepreneurs the importance of design, how to create buzz when introducing new products to the marketplace, how to pioneer new technology and the importance of superior quality....


New Real Estate Brokerage in town

Move over “big guys” there’s a new brokerage in town featuring local expertise, long standing experience and a fresh boutique approach. Kelowna, August 31 2014 – You may have...


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...

_



23002




Member of BC Press Council


22097