Thursday, September 3rd17.9°C
26775
26753

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

27504


Recent Trending




Today's Market
S&P TSX13596.41+51.16
S&P CDNX553.75+3.70
DJIA16374.76+23.38
Nasdaq4733.50-16.48
S&P 5001951.13+2.27
CDN Dollar0.7586+0.0049
Gold1124.00-8.50
Oil46.71+0.46
Lumber233.30-0.70
Natural Gas2.713+0.065

 
Okanagan Companies
Pacific Safety0.22+0.00
Knighthawk0.010.00
QHR Technologies Inc1.24+0.05
Cantex0.04-0.01
Anavex Life Sciences1.11-0.14
Metalex Ventures0.05-0.00
Russel Metals21.09+0.22
Copper Mountain Mining0.60-0.01
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.08-0.01
Decisive Dividend Corp2.50-0.12

 





FEATURED Property
22284873545 Benvoulin Road
4 bedrooms 3 baths
$1,298,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Where does the money go?

Photo: Thinkstock.comOne of the major components of business relationships that involve money are the fees in the investment industry. There is currently a quiet battle being waged between the practit...


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...

_








Member of BC Press Council


25143