The Canadian Press - ONLINE EDITION

Canadian dollar tumbles, data suggests U.S. housing rebound, weak inflation

  • Print

TORONTO - The Canadian dollar fell almost half a U.S. cent Tuesday as the greenback appreciated in the wake of data showing weak inflation in the United States and other reports pointing to a rebound in the American housing sector.

The loonie closed down 0.48 of a cent at 91.38 cents US as U.S. consumer prices rose in July at the slowest pace in five months, held back by a drop in gasoline prices.

The U.S. Labor Department says consumer prices edged up a seasonally adjusted 0.1 per cent last month, which met expectations.

Over the past 12 months, consumer inflation has gone up two per cent, meeting a target set by the Federal Reserve, while inflation excluding food and energy is up 1.9 per cent.

The latest read on inflation came ahead of the release Wednesday of the minutes from the latest Fed interest rate meeting. Then, on Friday, Fed chairwoman Janet Yellen delivers the keynote address at the central bank's annual meeting in Jackson Hole, Wyo.

Yellen is expected to again signal to the market that the central bank is in no rush to hike rates and when it does, the pace will be gradual.

Meanwhile, there was also further indication of a rebound in the U.S. housing sector as home construction jumped 15.7 per cent in July to an annualized rate of 1.09 million, the fastest pace in eight months.

That came on the heels of a strong builders sentiment survey released on Monday. And home improvement retailer Home Depot also reported a strong recent quarter with earnings up 14 per cent.

A calmer geopolitical backdrop seemed to also support markets Tuesday.

Russian Foreign Minister Sergey Lavrov said issues related to sending a humanitarian convoy to Ukraine were resolved following weekend talks in Berlin with his counterparts from Ukraine, Germany and France. Germany's Frank-Walter Steinmeier reported progress on "some issues," though Lavrov said there was no decision on establishing a ceasefire between the government and pro-Russian rebels.

Prices were lower on the commodity markets where September crude on the Nymex declined $1.93 to a seven-month low of US$94.48 a barrel. Prices have plunged 10 per cent in the past month as it has become less likely that Islamic State insurgents would seriously impede Iraqi oil production.

September copper was down two cents at US$3.09 a pound and December bullion fell $2.60 to US$1,296.70 and ounce.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Winnipeg Jets Bogosian-Little-Ladd

View more like this

Photo Store Gallery

  • Marc Gallant / Winnipeg Free Press.  Local/Standup- Morning Fog. Horse prances in field by McPhillips Road, north of Winnipeg. 060605.
  • Someone or thing is taking advantage of the inactivity at Kapyong Barracks,hundreds of Canada Geese-See Joe Bryksa’s goose a day for 30 days challenge- Day 15- May 22, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you support Canada's involvement in the fight against Islamic State?

View Results

View Related Story

Ads by Google