Loonie closes below 70 cents U.S. for first time in nearly 13 years

TORONTO -- The Canadian dollar has closed below 70 cents U.S. for the first time in nearly 13 years while the Toronto stock market registered another triple-digit loss.

See Full Article

The loonie finished the day at 69.71 cents U.S., down 0.43 of a cent since Tuesday's close.

The last time the Canadian dollar closed beneath the 70-cent U.S. mark was on April 30, 2003, when it was 69.76 cents U.S.

Colin Cieszynski, chief market strategist at CMC Markets, says the 70-cent mark constitutes a "pretty significant psychological hurdle."

Cieszynski says the loonie's "relentless drive lower" has been motivated primarily by falling oil prices -- and their potential implications for monetary policy.

"There's been a lot of growing speculation that the Bank of Canada's governor (Stephen) Poloz could kick off 2016 with a rate cut the same way he did in 2015," he said.

"There's a lot of concerns that the falling oil price could lead to more layoffs in the oil sector and deepen the recession that we're seeing in the oilpatch, so there is a growing possibility of that, although up until now he's been more content to let the falling loonie do a lot of the stimulus work for him."

The S&P/TSX composite index lost 203.49 points at 12,170.41 -- its 10th losing day in 11 trading sessions since the Christmas break.

Plummeting crude prices and lacklustre economic data out of China have been hammering Toronto's stock market in recent weeks.

In New York, the Dow Jones plunged 364.81 points to 16,151.41, while the S&P500 shed 48.40 points to 1,890.28 and the Nasdaq declined 159.86 points to 4,526.06.

On commodity markets, the February contract for benchmark crude finished the day four cents higher at US$30.48 a barrel, while February natural gas gained 1.2 cents to US$2.269 per mmBtu and February gold rose $1.90 to US$1,087.10 an ounce.



Advertisements

Latest Economic News

  • Air Canada's Montreal to Japan direct flight expected to generate economic returns

    Economic CTV News
    MONTREAL -- Air Canada says it will introduce direct year-round service between Montreal and Tokyo which the business community and politicians expect will generate economic returns beyond tourism. The country's largest airline will operate year-round service starting next June to Narita airport. Source
  • Greenpeace accused of 'eco-terrorism' in lawsuit filed by Dakota Access pipeline developer

    Economic CBC News
    Energy Transfer Partners LP on Tuesday sued Greenpeace and other environmental groups, accusing them of launching an "eco-terrorism" campaign aimed at blocking the Dakota Access Pipeline, the center of months of opposition by Native American and green groups. Source
  • Twitter Canada searching for new director after Rory Capern abruptly steps down

    Economic CTV News
    TORONTO - The managing director of Twitter Canada has unexpectedly stepped down a year and a half after taking on the job. Rory Capern said on Twitter that he was grateful for the chance to lead the division and was looking forward to what's next, without saying what that might be. Source
  • Realtors who break rules should face tougher penalty, says Ont. association

    Economic CTV News
    TORONTO -- The Ontario Real Estate Association says it's time for higher fines for real estate agents that break the rules. The association is proposing that the fines for salespeople who violate a code of ethics double to $50,000. Source
  • Banks help lift Toronto stock index as U.S. markets give up gains

    Economic CTV News
    TORONTO -- Shares of Canada's biggest banks and insurance companies are helping lift the Toronto stock market's main index today. The Toronto Stock Exchange's S&P/TSX composite index was up 67.17 points to 15,052.13, after 90 minutes of trading. Source
  • Toronto wealth management firm Wealthsimple launches 'Halal' investing portfolio

    Economic Toronto Sun
    TORONTO — Robo-adviser Wealthsimple has launched a new investment portfolio for observant Muslims, a move the company says builds off its success targeting smaller, underserviced groups of investors. The Toronto-based wealth management firm says its Halal investing portfolio is designed for those adhering to Islamic laws that prohibit investing in certain companies and financial products. Source
  • Walmart partners with Google on voice-activated shopping

    Economic CBC News
    Google is partnering with Walmart to allow customers to order thousands of products from Walmart via their smartphones or other Google devices such as the Home speaker. (Walmart) Walmart is diving into voice-activated shopping. Source
  • Record household debt to add pressure to credit cards in next downturn: Moodys

    Economic CTV News
    TORONTO -- Unprecedented household debt levels will give Canadians a rude awakening on their unpaid credit card bills if another economic downturn materializes in the coming years, according to a new report issued Wednesday. Moody's Investors Service it will be closely watching Alberta and Saskatchewan for signs of increased delinquencies on consumer debt portfolios. Source
  • Wealthsimple launches Halal investing portfolio for observant Muslims

    Economic CBC News
    Robo-adviser Wealthsimple has launched a new investment portfolio for observant Muslims, a move the company says builds off its success targeting smaller, underserviced groups of investors. The Toronto-based wealth management firm says its Halal investing portfolio is designed for those adhering to Islamic laws that prohibit investing in certain companies and financial products. Source
  • Royal Bank hikes dividend after posting $2.8B quarterly profit

    Economic CBC News
    Royal Bank of Canada is reporting nearly $2.8 billion of net income for its fiscal third quarter and an unexpectedly large increase to its quarterly dividend. RBC's net income was down three per cent from last year when its bottom line was boosted by the sale of an insurance business, which also reduced the bank's overall revenue. Source