9°c Partly cloudy
19°c Variable cloudiness
The Canadian Press - ONLINE EDITION
Canadian dollar moves lower amid uncertainty over fiscal cliff talks
Loonies are shown in Calgary, Alta., July 19, 2012. THsE CANADIAN PRESS/Jeff McIntosh
TORONTO - The Canadian dollar closed lower Thursday with sentiment whipsawed on varying assessments on how negotiations are going in clinching a deal that would avert the so-called fiscal cliff.
That's the term used for the looming imposition of big spending cuts and tax hikes next year under U.S. law if politicians don't negotiate an alternative. The U.S. economy would likely fall back into recession if the fiscal cliff can't be avoided.
The loonie was down 0.09 of a cent at 100.73 cents US following a gain of about one-third of a U.S. cent on Wednesday.
House Speaker John Boehner expressed disappointment with the pace of talks with the White House to avoid going over the fiscal cliff.
Following a Thursday meeting with Treasury Secretary Tim Geithner, Boehner said Republicans have put concessions on the table, but president Barack Obama still has to outline the spending cuts he’s willing to make.
"We have a debt crisis, it’s the spending that is out of control,"Boehner told reporters following the meeting.
Shortly after, Senate Majority Leader Harry Reid chimed in, saying president Obama is still waiting for a serious offer from Republicans.
"We need Republicans to come forward with something," he said.
Every day seems to bring a new assessment of where negotiations stand. Traders were reassured Wednesday after Boehner said he was optimistic that a deal can be reached with Obama.
Meanwhile, traders also took in better-than-expected Canadian trade data and an upward revision of third-quarter U.S. economic growth.
Statistics Canada reported the country’s current account deficit increased $500 million to $18.9 billion in the third quarter. The agency said the deficit grew as exports declined at a faster pace than imports fell.
And the U.S. economy grew at an annual rate of 2.7 per cent in the third quarter, higher than the original reading of two per cent.
Commodity prices were also higher as January crude on the New York Mercantile Exchange rose $1.58 to US$88.07 a barrel.
March copper gained seven cents to US$3.61 while February bullion was ahead $10.70 to US$1,727.20 an ounce.
More FP News Top Story
- Back to Top
- Return to FP News Top Story
More FP News Top Story
(1 of 43 articles for this week)
Duffy expense controversy sent back to closed-door Senate committee
05/21/2013 10:02 PM 0
Poll
Most Popular FP News Top Story
- Dates set for recreational food fishery in Newfoundland and Labrador
- Military ombudsman appeals to defence chief over home-equity losses
- Israeli archaeologists discover ancient clay seal in Jerusalem, suggest link to Temple ritual
- Pakistani model's tattooed nude photo in Indian magazine causes uproar
- Newest adaptation of classic 'Star Wars' film will feature characters speaking Navajo language
- Bangladesh rescuers say voices of survivors getting weaker as death toll nearly 350
- Prince Philip presented with Order of Canada during royal visit to Toronto
- 'It happens everywhere,' Bangladesh finance minister says of collapse as death toll tops 500
- Obama nominates friends Pritzker for commerce secretary and Froman for trade representative
- Amanda Berry, 1 of 3 women freed after held captive in Ohio home, arrives at sister's home
- Dates set for recreational food fishery in Newfoundland and Labrador
- Pakistani model's tattooed nude photo in Indian magazine causes uproar
- Unidentified victims of Bangladesh collapse buried as more graves are readied; toll now 420
- In unusual pattern, Oklahoma tornado tracked path of 1999 monster twister with record winds
- Israeli archaeologists discover ancient clay seal in Jerusalem, suggest link to Temple ritual
- Car bomb at French Embassy in Libyan capital wounds 3 in latest sign of deepening lawlessness
- Military ombudsman appeals to defence chief over home-equity losses
- A closer look at the 3 new game consoles from Microsoft, Nintendo and Sony
- First lady: Jobs program has led to training or hiring of 290,000 veterans, military spouses
- Sens-Habs series gets ugly:Eric Gryba suspended two games for Lars Eller hit
- ESPN says it regrets that reporter described gay NBA player Collins as a sinner
- Pakistani model's tattooed nude photo in Indian magazine causes uproar
- Unidentified victims of Bangladesh collapse buried as more graves are readied; toll now 420
- Dates set for recreational food fishery in Newfoundland and Labrador
- Census 2011 makes history: population in the West surpasses that in the East
- As Boston mourns, suspected brothers' radicalism comes into focus
- Israeli archaeologists discover ancient clay seal in Jerusalem, suggest link to Temple ritual
- Car bomb at French Embassy in Libyan capital wounds 3 in latest sign of deepening lawlessness
- Still no winner for $50 million Lotto Max jackpot, but Manitoba has a $1 million winner
- Elections Canada wants greater punishment powers in wake of robocalls debacle
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
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.