Monday, August 3rd15.7°C
26264
27169

Loonie dips for third day in a row

The Canadian dollar sold off for a third day on Friday amid data showing that inflation is even more tame than expected, leaving the Bank of Canada plenty of room to delay the next interest rate hike.

The currency tumbled 0.6 of a cent lower to 99.11 cents US, its lowest level since late July, 2012 as Statistics Canada said that Canada's annual inflation rate was 0.8 per cent in December, the same as in November.

On a month-to-month basis, consumer prices dipped 0.6 per cent from November, more than economists expected. Prices on a number of key items fell in December from the previous month, including gasoline, automobiles and clothing.

The dollar has been under pressure since the Bank of Canada indicated Wednesday that it will be slower to raise interest rates than had been expected because of economic weakness.

The dollar been supported in recent months partly on sentiment that the central bank could hike rates as early as later this year. The low inflation suggests interest-seeking investors have to wait longer for the central bank to move.

"The low-low inflation result will simply put additional near-term downward pressure on an already sagging Canadian dollar, as it pounds home the rather obvious point that the BoC is going nowhere fast," said BMO Capital Markets deputy chief economist Douglas Porter.

Recent optimism about improving economies in the U.S. and China had earlier supported an upswing in oil prices. The U.S. housing and jobs markets have shown improvement, while China's manufacturing output has been gaining steam.

But by late morning, the March crude contract on the New York Mercantile Exchange had shed 19 cents to US$95.76 a barrel.

February bullion on the Nymex declined $8.90 to US$1,661 an ounce while March copper was three cents lower at US$3.65 a pound.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14468.44+85.68
S&P CDNX594.31+6.01
DJIA17689.86-56.12
Nasdaq5128.28-0.50
S&P 5002103.84-4.79
CDN Dollar0.7607-0.0035
Gold1096.90+0.60
Oil46.76-0.77
Lumber252.10+0.50
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.17-0.01
Knighthawk0.010.00
QHR Technologies Inc1.42+0.00
Cantex0.035-0.005
Anavex Life Sciences0.9101+0.1101
Metalex Ventures0.05+0.00
Russel Metals19.40-0.05
Copper Mountain Mining0.79+0.01
Colorado Resources0.065+0.005
ReliaBrand Inc0.0049+0.0004
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.095-0.045
Decisive Dividend Corp2.55+0.05

 



26430

FEATURED Property
2296850760 Kitch Road
5 bedrooms 3 baths
$439,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Mortgage policy changes?

There are rumours circulating again that the federal government may move to tighten mortgage insurance criteria. This is prompted by a recent article in the Financial Post. The housing market while b...


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...

_



26376




Member of BC Press Council


26010