Monday, April 27th13.2°C
25936
25263

Loonie rises amid Fed tapering decision, worries over Iraq insurgency

TORONTO - The loonie ended Wednesday higher amid more tapering news from the U.S. Federal Reserve.

The Canadian dollar rose 0.12 of a cent to 92.17 cents US.

The Fed has announced it will cut its monthly bond purchases by US$10 billion to US$45 billion in July, citing an improving U.S. job market. This will be the fifth cut in the purchases since December as the Fed slows the support it's providing the American economy. The stimulus has helped keep borrowing rates low and supported equity markets.

The Fed did not give any date on when it might start raising its benchmark short-term rate, even though most economists think an increase is at least a year away despite signs of rising inflation.

Meanwhile, commodities dipped amid developments from Iraq.

Iraqi security forces battled with insurgents targeting the country's main oil refinery and claimed to regain partial control of a city near the Syrian border in an attempt to blunt the offensive by militants, who diplomats fear may have abducted some 100 foreign workers.

The Beiji refinery accounts for a little more than a quarter of the country's entire refining capacity, all of which goes toward domestic consumption for things like gasoline, cooking oil and fuel for power stations. Any lengthy outage at Beiji risks long lines at the gas pump and electricity shortages.

There has also been concern over possible disruption to oil exports by Iraq, the No. 2 producer in the Organization of Petroleum Exporting Countries.

However, Macan Nia, manager of the portfolio advisory group at Manulife Asset Management, said although the al-Qaida inspired group has gained a lot of ground over the last few days, he doesn't think things will be as easy as it head towards Baghdad and the south of Iraq, home of most of the country's oil production.

"It was a lot easier for them in northern Iraq, but as they approach Baghdad, there will be a lot more resistance in the south" from Shiite Iraqis and possibly Iranians and even the Americans, he said.

"The price of oil increase over the last week will be short term as (the militant group) faces a lot more resistance from a more powerful source."

The July crude contract fell 39 cents to US$105.97 a barrel. August gold bullion gained 70 cents to US$1,272.70 an ounce and while July copper was unchanged at US$3.06 a pound.

Follow @LindaNguyenTO on Twitter.

Note to readers: This is a corrected story: A previous version incorrectly said the loonie closed at 91.17 cents US

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15344.08-64.25
S&P CDNX690.10-7.60
DJIA18037.97-42.17
Nasdaq5060.25-31.84
S&P 5002108.92-8.77
CDN Dollar0.8264-0.0006
Gold1199.90-3.40
Oil56.30-0.69
Lumber255.00-1.20
Natural Gas2.471-0.019

 
Okanagan Companies
Pacific Safety0.08-0.04
Knighthawk0.010.00
QHR Technologies Inc1.40+0.02
Cantex0.035+0.005
Anavex Life Sciences0.395-0.035
Metalex Ventures0.095+0.000
Russel Metals27.05-0.11
Copper Mountain Mining1.25+0.10
Colorado Resources0.10+0.01
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.19-0.01
Decisive Dividend Corporation1.80+0.10

 



25849

FEATURED Property
1926928lakefront Acreages on South Arrow Lake only minutes to Castlegar
$449,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...


What's your score?

There was a time when we would sit down with nothing more than a sheet of paper and a sharp pencil to do the math. Totalling our expenses and subtracting our revenue, the amount left over was the answ...


Do you dare to dream?

Photo: Thinkstock.comI have never been able to understand why some people can only see as far ahead as the end of the current day. Instead of aiming for long term goals, they just wallow in their ever...

_



26069

26091


Member of BC Press Council


25692