Sunday, February 1st-0.8°C
24736
24977

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

23916


Recent Trending




Today's Market
S&P TSX14673.48+37.521
S&P CDNX676.81+9.70
DJIA17164.95-251.90
Nasdaq4635.24-48.167
S&P 5001994.99-26.26
CDN Dollar0.7856-0.0067
Gold1286.60-5.10
Oil49.60+3.16
Lumber322.50+0.70
Natural Gas2.87-0.111

 
Okanagan Companies
Pacific Safety0.120.00
Knighthawk0.010.00
QHR Technologies Inc1.400.00
Cantex0.035-0.005
Anavex Life Sciences0.174-0.006
Metalex Ventures0.040.00
Russel Metals23.42-0.16
Copper Mountain Mining0.99+0.01
Colorado Resources0.150.00
ReliaBrand Inc0.01+0.0031
Sunrise Resources Ltd0.050.00
Mission Ready Services0.2350.00

 



25007

FEATURED Property
1982440682 Devonian Avenue
5 bedrooms 4 baths
$1,299,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Leaving a job: changing careers

Many people, who find themselves out of work and with time on their hands, and money in their pockets due to lay-off, start thinking about a career change. If you weren’t happy with the directio...


Service fit makes happy employees

Finding the right employees for the front lines of your company is key to developing a great service attitude within your company. It is just as important as hiring the right accountant, manager, sale...


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...

_








Member of BC Press Council


24720