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Canadian Financial Close: Rate freeze leads to lower loonie

By MarketsFarm

WINNIPEG, Jan. 22 (MarketsFarm) – The Canadian dollar was weaker at market close on Wednesday, following the Bank of Canada’s interest rate announcement.

The loonie finished the day at US$0.7624 or US$1=C$1.3116, which compares with Tuesday’s close of US$0.7653 or C$1.3067.

The central bank’s governor, Stephen Poloz, continued to free its key interest rate at 1.75 per cent. Poloz cited an easing of the Canadian economy and fears of increasing household debt levels as the reasons to maintain the freeze. However, he said if the economy doesn’t pick up soon, he would consider cutting the rate.

The TSX/S&P Composite Index was up 27.58 on Wednesday to close at 17,599.86 points.

Benchmark crude oil prices were weaker on Wednesday on fears of a global glut and growing concerns over the coronavirus in China and elsewhere.

Brent crude oil lost US$1.47 at US$63.12 per barrel. West Texas Intermediate (WTI) fell US$1.71 at US$56.67 per barrel. Western Canadian Select (WCS) dropped US$1.78 to close at US$32.99 per barrel.

Gold was slightly lower by 89 cents on Wednesday to close at US$1,559.06 per ounce.

Canada’s agricultural sector fared as follows:

Buhler Industries unchanged at $ 2.80
Linamar Corp. dn $ 0.52 at $ 47.16
Maple Leaf Foods dn $ 0.03 at $ 24.81
Nutrien Ltd. dn $ 0.64 at $ 60.36
Ritchie Bros Auctioneers Inc. up $ 0.07 at $ 57.09
Rocky Mountain Dealerships Inc. dn $ 0.10 at $ 6.72
(All figures are in Canadian dollars.)

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Glacier FarmMedia Feed

Glacier FarmMedia, a division of Glacier Media, is Canada's largest publisher of agricultural news in print and online.

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