Saturday, February 28th4.7°C
25355
24506

Loonie rises, greenback weakens as strong data raises rate hike expectations

TORONTO - The Canadian dollar closed higher Thursday as the greenback weakened somewhat after minutes from the latest Federal Reserve meeting supported expectations that the central bank could move to hike rates earlier than expected next year.

The loonie gained 0.22 of a cent to 91.37 cents US.

The American currency lost momentum during the morning amid positive American economic data.

The preliminary Markit manufacturing purchasing managers index for the manufacturing sector jumped to a reading of 58 in August from 55.8 in July, its highest level since April 2010.

Other data showed U.S. new home sales rose for a fourth straight month to the highest level in nearly a year.

The news from Japan was also positive. There was a firm increase in Japan's manufacturing PMI to 52.4 from 50.5 in the prior month, ahead of expectations and the best level since March.

Elsewhere, the news was glum as the preliminary version of HSBC's manufacturing index for China fell to a three-month low of 50.3 from 51.7 in July, indicating that manufacturing businesses are barely growing.

Also, the purchasing managers index for the eurozone published by Markit Economics fell to 52.8 from 53.8 in July. The report followed other data earlier this month that showed the 18-country eurozone grew at only a slow pace in August, a sign it remains sluggish after a disappointing second quarter in which it did not expand at all.

Meanwhile, the Fed minutes indicated that the U.S. central bank is in no rush to hike rates. However, the minutes also showed greater dissension among Fed members on how fast the labour market is improving, a key element in determining when the Fed will raise rates from near zero where they've been since the financial crisis.

Slack in the labour market has been a particular concern, a topic that Fed chairwoman Janet Yellen is expected to address in her speech to the central bank's economic symposium on Friday.

On the commodity markets, the December gold contract in New York fell $19.80 to US$1,275.40 an ounce as concerns the Fed could move sooner than expected to hike interest rates and a lessening of tensions in the Ukraine/Russia crisis continued to pummel bullion prices.

October crude in New York climbed 51 cents to US$93.96 while September copper was unchanged at US$3.18 a pound.

The Canadian Press


Read more Business News

24153


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
Oil52.14+1.53
Lumber297.20+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

 



24393

FEATURED Property
207281324 - 18451 Cyrstal Waters Road
4 bedrooms 5 baths
$1,695,000
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


24843