Friday, May 29th17.8°C
26329
24291

Canadian dollar loses ground amid U.S. interest rate concerns, lower commodities

TORONTO - The Canadian dollar closed lower a day before the Bank of Canada delivers its latest announcement on interest rates.

The loonie was down 0.38 of a cent at 92.95 cents US.

The central bank is universally expected to hold its key rate at one per cent, where it's been since September 2010, as the global economy slowly recovers from the financial collapse of 2008 and the subsequent recession.

Traders will be particularly interested in what the bank has to say about the economy and how conditions could be impacted by a stubbornly high Canadian dollar.

"The BoC risk is that governor Poloz strikes a cautious tone, highlighting that a strong (currency) risks weighing on important economic fundamentals," said Camilla Sutton, chief FX strategist and managing director of Scotiabank's global banking and markets operations.

Losses in the Canadian currency grew while the greenback strengthened as Federal Reserve chair Janet Yellen delivered testimony to Congressional committees on the economy and monetary policy.

Yellen said in delivering the Fed’s semi-annual economic report to Congress that the economic recovery is not yet complete and the Fed intends to keep providing significant support. But she also said if labour market conditions continue to improve more quickly than anticipated, the Fed could raise its key short-term interest rate sooner than currently projected, the summer of 2015.

The Fed's semi-annual report to Congress also pointed out that some broad equity price indexes have increased to all-time highs in nominal terms since the end of 2013.

It observed that "valuation metrics in some sectors do appear substantially stretched, particularly those for smaller firms in the social media and biotechnology industries."

On the economic calendar, data showed U.S. retail sales for June rose by 0.2 per cent, less than the 0.6 per cent gain that had been expected. Excluding autos, sales rose 0.4 per cent.

Commodity prices were mixed with August crude on the New York Mercantile Exchange down 95 cents at US$99.96 a barrel.

September copper was unchanged at US$3.25 a pound while August gold bullion fell $9.60 to US$1,297.10 an ounce.

The Canadian Press


Read more Business News

26416


Recent Trending




Today's Market
S&P TSX15014.09-92.89
S&P CDNX692.45+0.29
DJIA18010.68-115.44
Nasdaq5070.03-27.95
S&P 5002107.39-13.40
CDN Dollar0.8029-0.0017
Gold1204.30+1.50
Oil60.86+2.49
Lumber273.40+0.90
Natural Gas2.83+0.01

 
Okanagan Companies
Pacific Safety0.14+0.01
Knighthawk0.010.00
QHR Technologies Inc1.46-0.02
Cantex0.03+0.00
Anavex Life Sciences0.40+0.00
Metalex Ventures0.07-0.01
Russel Metals25.07-0.13
Copper Mountain Mining1.27-0.03
Colorado Resources0.10+0.00
ReliaBrand Inc0.022+0.009
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.16+0.01
Decisive Dividend Corporation2.28+0.18

 



26416

FEATURED Property
1941017#206, 3550 Woodsdale Road
3 bedrooms 2 baths
$299,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Yard sale pricing

Photo: Thinkstock.comI have deliberately abridged this household tips article to illustrate pricing strategies. "Tips For Pricing Yard Sale Items” was written by Lynnette Walczak, and publi...


What's a robo-advisor?

Photo: ContributedIt can only be attributable to human error. -Hal, 2001: A Space Odyssey For most of us who are within thinking distance of retirement, the term “robo” conjures up image...


Cash stressed seniors

Photo: Thinkstock.comFor many Canadian homeowners, their house represents the biggest portion of their net worth. Now, increasing numbers of seniors are starting to recognize the hidden value of their...

_



25991

26418


Member of BC Press Council


26106