The Canadian Press - ONLINE EDITION

Loonie rises, greenback weakens as strong data raises rate hike expectations

  • Print

TORONTO - The Canadian dollar closed higher Thursday as the greenback weakened somewhat after minutes from the latest Federal Reserve meeting supported expectations that the central bank could move to hike rates earlier than expected next year.

The loonie gained 0.22 of a cent to 91.37 cents US.

The American currency lost momentum during the morning amid positive American economic data.

The preliminary Markit manufacturing purchasing managers index for the manufacturing sector jumped to a reading of 58 in August from 55.8 in July, its highest level since April 2010.

Other data showed U.S. new home sales rose for a fourth straight month to the highest level in nearly a year.

The news from Japan was also positive. There was a firm increase in Japan's manufacturing PMI to 52.4 from 50.5 in the prior month, ahead of expectations and the best level since March.

Elsewhere, the news was glum as the preliminary version of HSBC's manufacturing index for China fell to a three-month low of 50.3 from 51.7 in July, indicating that manufacturing businesses are barely growing.

Also, the purchasing managers index for the eurozone published by Markit Economics fell to 52.8 from 53.8 in July. The report followed other data earlier this month that showed the 18-country eurozone grew at only a slow pace in August, a sign it remains sluggish after a disappointing second quarter in which it did not expand at all.

Meanwhile, the Fed minutes indicated that the U.S. central bank is in no rush to hike rates. However, the minutes also showed greater dissension among Fed members on how fast the labour market is improving, a key element in determining when the Fed will raise rates from near zero where they've been since the financial crisis.

Slack in the labour market has been a particular concern, a topic that Fed chairwoman Janet Yellen is expected to address in her speech to the central bank's economic symposium on Friday.

On the commodity markets, the December gold contract in New York fell $19.80 to US$1,275.40 an ounce as concerns the Fed could move sooner than expected to hike interest rates and a lessening of tensions in the Ukraine/Russia crisis continued to pummel bullion prices.

October crude in New York climbed 51 cents to US$93.96 while September copper was unchanged at US$3.18 a pound.

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

Preview of Small Things at PTE Mainstage

View more like this

Photo Store Gallery

  • JOE.BRYKSA@FREEPRESS.MB.CA Local-(Standup photo)- Humming Around- A female ruby -throated hummingbird fly's through the bee bomb  flowers Friday at the Assiniboine Park English Garden- Nectar from flowers are their main source of food. Hummingbirds wings can beat as fast as 75x times second. Better get a glimpse of them soon the birds fly far south for the winter - from Mexico to South America- JOE BRYKSA/WINNIPEG FREE PRESS- Sept 10, 2009
  • JOE BRYKSA/WINNIPEG FREE PRESS Local- A large osprey lands in it's nest in a hydro pole on Hyw 59  near the Hillside Beach turnoff turn off. Osprey a large narrow winged hawk which can have a wingspan of over 54 inches are making a incredible recovery since pesticide use of the 1950's and  1960's- For the last two decades these fish hawks have been reappearing in the Lake Winnipeg area- Aug 03, 2005

View More Gallery Photos

Poll

Are you still on the Bombers' and Jets' bandwagons?

View Results

View Related Story

Ads by Google