Loonie hits six month low
Jan 28, 2013 / 11:15 am
TORONTO - The Canadian dollar was at a six-month low Monday amid lower interest rate expectations and mixed commodity prices.
The loonie was off the worst levels of the morning but still down 0.22 of a cent at 99.13 cents US nearing midday.
The dollar has tumbled more than 1 1/2 cents US 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 has been supported in recent months partly on sentiment that the central bank might hike rates later this year. Data released Friday showing low inflation in Canada at the end of 2012 further suggested that investors will have to wait longer for the central bank to move. Higher rates tend to attract investors and push up the currency.
Oil prices advanced with the March crude contract on the New York Mercantile Exchange ahead 26 cents to US$96.14 a barrel.
March copper rose one cent to US$3.66 a pound while February bullion was off $1.80 at US$1,654.80 an ounce.
Traders also looked ahead to important economic news coming out this week.
Statistics Canada is expected to report Thursday that the economy grew by 0.2 per cent in November, which would be the highest gain in four months. Last week, the Bank of Canada shaved three-tenths of a point off its projections for growth for both 2012 and 2013, to 1.9 per cent and 2.0 per cent respectively.
On Monday, U.S. data showed that durable goods orders rose by a greater than expected 4.6 per cent in December. That was more than double the consensus forecast for a two per cent gain. The transportation sector was largely responsible for the increase, with orders in that segment up 12 per cent.
The U.S. Federal Reserve wraps up its two-day meeting on interest rates Wednesday. No one expects the central bank to move on rates but traders will look for clues as to when the Fed could end its latest round of economic stimulus.
The Fed minutes from the previous meeting, released Jan. 3, showed a split among members over how long to continue the stimulus, known as quantitative easing. It involves the Fed buying bonds to support the U.S. economy, a move aimed at keeping interest rates low.
Some thought the program should be slowed or stopped before the end of 2013 amid concerns that the bond purchases would destabilize the economy.
The key piece of U.S. data for the week comes out Friday. Economists generally expect the U.S. non-farm payrolls report to show that the American economy created 153,000 jobs in January, slightly below December's 155,000 reading.
Traders will also take in the latest reading on U.S. economic growth during the week.
Read more Business News
|QHR Technologies Inc||1.19||-0.01|
|Anavex Life Sciences||0.36||-0.01|
|Copper Mountain Mining||1.58||+0.02|
This column is the last of three, for how to prove your personal injury claim. It is the piece de resistance of the trilogy, the Chuck Norris piece – the final say! As mentioned in the first two...
The bank manager just phoned and asked for full and immediate repayment of the line of credit because the latest, (and they were late!), financial statements showed continuing losses and falling sales...
Recently I recorded a video series for my keynote speaking business. It was called from Faith to Future. In one of the episodes, I talked about the concept of using hard work to get out of a difficul...
- Alaska town's eBay sale of Palin's mayoral vehicle causes stir
- Talisman Energy sells stake in Colombia pipeline for US$595 million
- Chorus Aviation raises dividend by 50 per cent following arbitration win
- Loan guarantee for Muskrat Falls finalized: Newfoundland and Labrador premier
- Farm group says new federal bill gives more control to seed companies
- With NHL revenues tied closely to Canadian dollar, Bettman keeps eye on it
- Fewer risks to Canadian financial systems, but housing still a concern: BoC
- Betty Quadracci, co-founder of Quad/Graphics, dies at 75, was Milwaukee Magazine president
- With a cool $31.6 million in its second week, 'Frozen' takes over top spot at the box office
- Canadian Oil Sands appoints new CEO, sets $1.1-billion 2014 capital budget
- Government sells remaining stake in General Motors, loses $10.5 billion on company bailout
- Time to 'Jumpstart' your business