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

  • CIBC considering U.S. stock listing for Caribbean banking subsidiary

    Economic CTV News
    TORONTO -- Canadian Imperial Bank Of Commerce is considering a U.S. stock listing for its Caribbean bank subsidiary. The Canadian bank says no decision has been made, but a U.S. listing would provide FirstCaribbean International Bank access to a larger investor base, enhanced liquidity and greater access to capital to support long-term growth. Source
  • Bombardier meets with its unions as U.S. Commerce Department decision looms

    Economic CTV News
    MONTREAL -- A meeting between Bombardier management and union leaders is taking place today with the U.S. Commerce Department's proposed 300 per cent duty on all imports of its C Series planes on the menu. Source
  • Empire Co. Ltd. plans to expand FreshCo grocery banner in Western Canada

    Economic CTV News
    STELLARTON, N.S. - Empire Co. Ltd. is planning to convert up to a quarter of its 255 Safeway and Sobeys stores in Western Canada to its discount FreshCo banner over the next five years. The company (TSX:EMP.A) made the announcement as it posted a loss in its latest quarter as it was hit by restructuring costs. Source
  • Faulty rollover bar prompts recall of two John Deere utility tractors

    Economic CTV News
    OTTAWA -- Health Canada says a John Deere compact utility tractor is being recalled due to a safety hazard. The agency, in conjunction with the U.S. Consumer Product Safety Commission, says the rollover protective bar at the back of the tractor can loosen and fail in a rollover accident, which could result in serious injury or death. Source
  • Canadians expected to pay more to dine out in 2018

    Economic CBC News
    Look out vegetarians — fresh produce and restaurant meals are going to cost you more in 2018. According to the latest annual Canada's Food Price Report by researchers at Dalhousie University and the University of Guelph, food prices at restaurants are forecast to rise between four and six per cent in 2018, much higher than the one to three per cent increase restaurants typically experience. Source
  • How an expected U.S. interest rate increase will affect Canadians: Don Pittis

    Economic CBC News
    In a few hours we'll know for sure, but it seems like a foregone conclusion that Janet Yellen will use her last monetary policy news conference as chair of the U.S. Federal Reserve to raise interest rates. Source
  • Asian stocks rise ahead of U.S. interest rate announcement

    Economic CTV News
    BEIJING - Asian stocks were mixed Wednesday following overnight gains on Wall Street as investors looked ahead to a likely U.S. interest rate hike. KEEPING SCORE: The Shanghai Composite Index was unchanged at 3,279.43 while Tokyo's Nikkei 225 lost 0.3 per cent to 22,805.80. Source
  • Global stocks steady ahead of expected Fed rate hike

    Economic CTV News
    LONDON -- Global stock markets traded in narrow ranges Wednesday ahead of an expected interest rate hike from the U.S. Federal Reserve. KEEPING SCORE: In Europe, Germany's DAX was down 0.1 per cent 13,172 while France's CAC-40 fell 0.3 per cent at 5,413. Source
  • Air Canada expanding codeshares for 2018 Canada-China Year of Tourism

    Economic CTV News
    MONTREAL - Air Canada (TSX:AC) and Air China Ltd. say they will be expanding their mutual codeshare services in time for the 2018 Canada-China Year of Tourism. Air China will place its code on Air Canada's new daily Montreal-Shanghai flight, as well as Air Canada's flights from Vancouver to Victoria, Kelowna, Saskatoon and Regina. Source
  • Canadian cellular prices declining, mainly for talk and text, report finds

    Economic CBC News
    Prices for cellphone service in Canada came down in the last year, but only if you don't use your cellphone very much. That's one of the major takeaways from a new report looking at telecom services and how they stack up with the rest of the world, and compared to what they used to be. Source