Glacier FarmMedia – The Canadian dollar retreated further on Thursday, one day after the Bank of Canada and the United States Federal Reserve made identical key interest rate cuts.
The loonie closed at US$0.7248 or US$1=C$1.3797, compared to US$0.7267 or US$1=C$1.3760 on Wednesday. The BoC announced yesterday it cut its overnight rate by 25 basis points at 2.5 per cent in an effort to combat inflation.
The United States Dollar Index was up 0.49 of a point at 97.36. The Fed announced a cut of 25 basis points to its key interest rate on Wednesday as well.
Crude oil prices were down as U.S. economic worries outweighed the Fed’s rate cut.
West Texas Intermediate lost US$0.35 per barrel at US$63.70. Brent crude oil declined US$0.36/barrel at US$67.59.
The TSX/S&P Composite Index reached another all-time high of 29,504.21 points before closing at 29,453.53, up 131.87 points.
Gold fell US$38.90 per ounce at US$3,678.90.
