By Commodity News Service Canada
Sept. 20 – The Canadian dollar took a sharp drop compared to the U.S. currency, giving up gains it made earlier in the day following an announcement by the U.S. central bank that it would likely boost American prime interest rates. As the U.S. dollar jumped when measured against a collection of foreign currencies, the loonie tumbled. The Canadian dollar sat at US$0.8173 at 9:54 a.m. CDT, then fell to US$0.8071 at 11:50 a.m. CDT before rebounding in the afternoon to close at US$0.8148 or C$1.2273 per US$1. It closed Tuesday at US$0.8145 or C$1.2277 per US$1.
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The United States Federal Reserve left its key lending rate unchanged but board chair Janet Yellen said the central bank was planning gradual interest rate increases — one more this year and three hikes in 2018 if low inflation continues. The Fed kept its short-term rate to a range between one and 1.25 per cent. It also announced this afternoon that it will begin gradually selling off US$4.5 trillion in mostly bonds it accumulated under a stimulus package, which began in 2008.
The S&P/TSX gained 96.63 points at the close today, up 0.63 per cent to 15,389.60. Strong energy stocks and industrials led the way, with energy stocks up 2.38 per cent and industrials 1.48 per cent higher. Eight of 10 sectors at the exchange posted gains, with consumer staples and materials the outliers
WTI crude gained 83 cents U.S. to US$50.73, its highest level since May.
Canada’s agricultural sector performed as follows:
AGT Food and Ingredients—–dn $ 0.60 at $ 25.91
Agrium Incorporated———-dn $ 1.26 at $131.91
Buhler Industries————– $ 0.00 at $ 4.45
Maple Leaf Foods————-up $ 0.06 at $ 33.94
Potash Corp. of Sask———dn $ 0.15 at $ 23.54
(All figures are in Canadian dollars.)
