Canadian Financial Close: Loonie plunges, federal budget unveiled

WINNIPEG – The Canadian dollar dropped on Thursday as the federal government tabled its budget in the House of Commons.

The loonie closed at US$0.7947 or US$1=C$1.2584, down from Wednesday’s close of US$0.7994 or US$1=C$1.2509. The federal budget, which will reportedly include a surtax on financial institutions that made huge profits during the COVID-19 pandemic and a partial ban on foreign homebuyers, didn’t have the higher spending levels as some expected. The net cost for new measures was estimated at C$31.2 billion over six years, much lower than some economists’ projections of nearly C$100 billion.

The U.S. Dollar Index was up 0.22 of a point at 99.82, hours after reaching 99.83, the index’s highest level since May 2020.

Crude oil prices were slightly higher on Thursday. Brent crude oil added US$0.24 per barrel at US$101.31. West Texas Intermediate (WTI) crude oil increased US$0.67 at US$96.90/barrel. Western Canadian Select (WCS) advanced US$0.20 to US$83.60.

The TSX/S&P Composite Index gained 46.29 points at 21,834.89.

Gold rose US$11.60 per ounce to US$1,934.70.

Canada’s agricultural sector fared as follows:

Buhler Ind. up $ 0.07 at $ 2.67
Farmer’s Edge Inc. dn $ 0.07 at $ 2.92
Linamar Corp. up $ 0.47 at $ 52.93
Maple Leaf Foods dn $ 0.39 at $ 30.12
Nutrien Ltd. up $ 4.54 at $131.33
Ritchie Bros Auctioneers Inc. dn $ 0.44 at $ 73.54

(All figures are in Canadian dollars.)