Canadian Financial Close: Loonie reacts to surge in U.S. dollar
Sharp jump in greenback after Federal Reserve comments
By Glen Hallick
Glacier Farm Media | MarketsFarm – The Canadian dollar gave up almost two-tenths of a cent on Wednesday, due to a sharp hike in its United States counterpart.
The loonie closed Wednesday at US$0.6972 or US$1=1.4343, compared to Tuesday’s finish of US$0.6991 or US$1=1.4305. On the U.S. Dollar Index, the greenback advanced 1.192 points at 107.855.
The significant increase in the U.S. dollar came after Federal Reserve chair Jerome Powell stated a more restrictive monetary policy is needed. Also, the Fed signaled further interest rate cuts in 2025 would likely amount to no more than 50 points. With today’s reduction of 25 basis points, that brought the total for 2024 to 100 points.
Benchmark crude oil prices a pinch lower on Wednesday, because of that course of action the Fed said it will be taking in next year.
Brent crude oil gave up 30 cents at US$72.89 per barrel and West Texas Intermediate dipped eight cents at US$70.00.
The TSX Composite Index plummeted 562.71 points on Wednesday to close at 24,557.00.
Gold fell US$55.40 at US$2,606.60 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Industries unchanged at $ 2.95 Farmers Edge Inc. unchanged at $ 0.345 Linamar Corp. dn $ 2.09 at $ 56.57 Maple Leaf Foods dn $ 0.42 at $ 20.85 Nutrien Ltd. dn $ 1.51 at $ 64.85 RB Global Inc. dn $ 2.77 at $131.15
(All figures are in Canadian dollars)
