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.
Read more Business News
- Man dies after hit by semiPenticton / S. Okanagan - 1:58 pm
- School zones back in sessionWest Kelowna - 4:45 pm
- Smoke forces evacuationKelowna - 2:30 pm
- Four vehicle crash kills bearKelowna - 2:07 pm
|QHR Technologies Inc||1.27||-0.10|
|Anavex Life Sciences||0.2195||-0.0035|
|Copper Mountain Mining||2.40||-0.26|
|Sunrise Resources Ltd||0.02||-0.005|
|Mission Ready Services||0.27||-0.02|
“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...
Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...
There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...