Canadian Financial Close: Rate cut pulls down loonie
BoC imposes second reduction this year
By Glen Hallick
Glacier Farm Media MarketsFarm – The Canadian dollar slipped lower on Wednesday, following this morning’s interest rate announcement from the Bank of Canada.
The BoC cut 25 basis points from its key lending rate, dropping it to 4.5 per cent. It’s the second consecutive reduction the central bank has implemented this year.
The loonie closed at US$0.7250 or US$1=C$1.3794, compared to Tuesday’s finish of US$0.7263 or US$1=C$1.3768. On the U.S. Dollar Index, the greenback dipped 0.0670 of a point at 104.105.
Benchmark crude oil prices were moderately higher on Wednesday as U.S. stockpiles shrank to their lowest levels in five months.
Brent crude oil rose 55 cents at US$81.56 per barrel and West Texas Intermediate added 69 cents at US$77.65.
The TSX Composite Index lost 174.18 points on Wednesday to close at 22,639.57.
Gold stepped back US$7.90 at US$2,399.40 per ounce.
Canada’s agricultural sector fared as follows:
Buhler Industries unchanged at $ 2.02 Farmers Edge Inc. unchanged at $ 0.345 Linamar Corp. dn $ 0.91 at $ 67.53 Maple Leaf Foods up $ 0.08 at $ 24.83 Nutrien Ltd. dn $ 0.04 at $ 68.31 RB Global Inc. dn $ 1.03 at $109.79
(All figures are in Canadian dollars)
