Friday, February 27th8.5°C
25154
24575

Loonie stays unchanged as it looks for direction with no economic releases

TORONTO - The Canadian dollar closed unchanged on Tuesday, unable to find direction amid a dearth of market-moving Canadian economic data.

The loonie ended the day at 93.66 cents US.

A number of factors, including rising inflation, a better American economic climate and rising oil prices, have helped push the currency to the 94-cent US mark in recent weeks and close to its highest point so far this year.

But the currency pulled back Monday after the Bank of Canada released its summer business survey.

The survey, which was slightly more pessimistic that the bank's previous reading in April, showed executives at 100 Canadian corporations remained confident about future economic activity but were still cautious when it came to investment and hiring.

"The loonie is a perplexing quagmire for (bank governor Stephen) Poloz who has tried to talk down the value of the loonie," said Craig Jerusalim, a portfolio manager at CIBC. "It really needs to stay closer to the 90-cent US level for it to have a long, sustainable positive effect on trade and manufacturing in Canada."

Poloz has been depending on a weakened Canadian dollar to help drive exports and aid in Canada's economic recovery.

Jerusalim said that if the loonie continues to climb, or even reach parity with the U.S. dollar, it will be at a level "out of whack" with the current faster pace of recovery in the U.S., which would inevitably lead to a renewed weakening.

He forecasts that the Canadian dollar will fall to the 90- to 92-cents US range over the next 12 months.

Meanwhile, commodity prices were mostly lower, with August crude dipping 13 cents to US$103.40 a barrel.

August gold bullion lost 50 cents to US$1,316.50 an ounce, after posting gains earlier in the day, while September copper was unchanged at US$3.26 a pound.

Follow @LindaNguyenTO on Twitter.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15234.34-6.82
S&P CDNX706.73+5.80
DJIA18132.70-81.72
Nasdaq4963.528-24.362
S&P 5002104.50-6.24
CDN Dollar0.7996+0.0004
Gold1203.00+6.10
Oil51.79+1.40
Lumber296.70+1.20
Natural Gas2.895-0.007

 
Okanagan Companies
Pacific Safety0.12+0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.03
Cantex0.035-0.005
Anavex Life Sciences0.190.00
Metalex Ventures0.035-0.005
Russel Metals25.38+0.08
Copper Mountain Mining1.30+0.04
Colorado Resources0.15+0.015
ReliaBrand Inc0.008-0.0007
Sunrise Resources Ltd0.05+0.015
Mission Ready Services0.235+0.025

 



23015

FEATURED Property
18914094129 Gellatly Road, Westbank, BC
3 bedrooms 2 baths
$1,795,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...


Are you asking the right questions?

Have you ever had this happen to you? You are in the middle of your second or third good discussion with a prospect and everything seems to be going great. The prospect seems engaged and happy to work...

_








Member of BC Press Council


24850