Friday, October 24th11.1°C
23888
23589

Canadian dollar rises amid weak U.S. economic data, higher commodity prices

TORONTO - The Canadian dollar closed higher Wednesday as the greenback fell amid weak U.S. economic data.

The loonie was ahead 0.19 of a cent to 93.27 cents US as the final revision to American economic growth in the first quarter showed that gross domestic product shrank 2.9 per cent, larger than the two per cent contraction economists had expected. However, the decline in economic performance was due in large part to severe winter weather.

Also, U.S. durable goods orders fell one per cent in May, against an expected one per cent gain. The drop was driven by sharp drop in demand for military equipment.

The showing Wednesday left the loonie up about 1.2 cents over the past week at a six-month high as oil and gold prices have advanced amid geopolitical concerns centred on a rising insurgency in Iraq and tensions between Ukraine and Russia.

The loonie had also found support from stronger than expected inflation data, which raised expectations that the Bank of Canada could raise interest rates sooner than thought.

On the commodity markets, August crude on the New York Mercantile Exchange gained 47 cents to US$106.50 a barrel.

Oil prices have risen steadily over the past couple of weeks amid a rising insurgency in Iraq. However, prices had stepped back over the previous two days as fears receded that the insurgency would greatly affect the country's oil production and exports.

U.S. benchmark crude futures rose Wednesday after The Wall Street Journal reported that the U.S. government was loosening a long-standing ban by letting two companies sell American oil internationally. The newspaper said the Obama administration would allow foreign buyers to purchase a type of ultralight oil known as condensate, which can be turned into gasoline, jet fuel and diesel.

Metal prices erased early losses with July copper up two cents to US$3.17 a pound, while August gold bullion added $1.30 to US$1,322.60.

The Canadian Press


Read more Business News

23658


Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 



23658

FEATURED Property
19964572420 Abbott
3 bedrooms 3 baths
$2,295,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


23741