The Canadian Press - ONLINE EDITION

Loonie stays unchanged as it looks for direction with no economic releases

  • Print

TORONTO - The Canadian dollar closed unchanged on Tuesday, unable to find direction amid a dearth of market-moving Canadian economic data.

The loonie ended the day at 93.66 cents US.

A number of factors, including rising inflation, a better American economic climate and rising oil prices, have helped push the currency to the 94-cent US mark in recent weeks and close to its highest point so far this year.

But the currency pulled back Monday after the Bank of Canada released its summer business survey.

The survey, which was slightly more pessimistic that the bank's previous reading in April, showed executives at 100 Canadian corporations remained confident about future economic activity but were still cautious when it came to investment and hiring.

"The loonie is a perplexing quagmire for (bank governor Stephen) Poloz who has tried to talk down the value of the loonie," said Craig Jerusalim, a portfolio manager at CIBC. "It really needs to stay closer to the 90-cent US level for it to have a long, sustainable positive effect on trade and manufacturing in Canada."

Poloz has been depending on a weakened Canadian dollar to help drive exports and aid in Canada's economic recovery.

Jerusalim said that if the loonie continues to climb, or even reach parity with the U.S. dollar, it will be at a level "out of whack" with the current faster pace of recovery in the U.S., which would inevitably lead to a renewed weakening.

He forecasts that the Canadian dollar will fall to the 90- to 92-cents US range over the next 12 months.

Meanwhile, commodity prices were mostly lower, with August crude dipping 13 cents to US$103.40 a barrel.

August gold bullion lost 50 cents to US$1,316.50 an ounce, after posting gains earlier in the day, while September copper was unchanged at US$3.26 a pound.

Follow @LindaNguyenTO on Twitter.

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

Trucks power through flooded underpass at Main St and Higgins

View more like this

Photo Store Gallery

  • A goose flys defensively to protect their young Wednesday near Kenaston Blvd and Waverley -See Bryksa 30 Day goose challenge- Day 16 - May 23, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Marc Gallant/Winnipeg Free Press. Gardening Column- Assiniboine Park English Garden. July 19, 2002.

View More Gallery Photos

Poll

Does Canada need a national inquiry into the disproportionately high number of missing and murdered aboriginal women?

View Results

View Related Story

Ads by Google