Canadian Financial Close: C$ drops after fed hints at rate hike

By Commodity News Service Canada

WINNIPEG, May 27 – The Canadian dollar dropped against its
US counterpart on Friday, in the wake of bearish comments from
Federal Reserve Chairwoman Janet Yellen.
Yellen hinted the fed is open to raising rates. She stated
that the reserve is to “gradually and cautiously” raise its
short-term interest rate over time, and “probably in the coming
months such a move would be appropriate,” according to reports.
The Canadian dollar closed at US$0.7670 or US$1=C$1.3038,
which compares with Thursday’s close of US$0.7710, or
US$1=C$1.2970.
The Standard & Poor’s/TSX Composite Index finished higher,
taking strength from advances in health-care stocks and
financial services.
Yellen’s comments also buoyed markets as higher interest
rates make dividend-yielding stocks more desirable over so-
called “safe-havens” like bullion and gold stocks.
The S&P/TSX Composite index rose 44.93 points, or 0.25%, to
17,873.22.