By Commodity News Service Canada
WINNIPEG, Sept. 27 – The Canadian dollar came under pressure after U.S. Federal Reserve Chair Janet Yellen said the U.S. central banking authority should be wary about moving too slowly in hiking U.S. interest rates. Yellen’s comments sparked a jump in U.S. bond yields and the Canadian dollar plunged.
As well, Bank of Canada governor Stephen Poloz said Canada will be flexible in its interest rate policies and there is no planned script.
The loonie closed today at US$0.8057 or C$1.2412 per US$1. It closed yesterday at US$0.8084 or C$1.2370 per US$1.
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The trade dispute that has seen Bombardier shocked by a 220 per cent tariff on C Series jet imports to the U.S. threatened to add to tensions in talks to remake the North American Free Trade Agreement. Following the ruling by the U.S. Department of Commerce, Canadian Prime Minister Justin Trudeau repeated threats to cancel a planned purchase of Boeing Hornet military jets. Canadian Trade Minister Francois-Philippe Champagne said Canada will not do business with a partner who is not reliable and Boeing has shown itself to be not a reliable partner. Boeing’s complaint about Bombardier subsidies sparked the decision to institute the tariffs.
The S&P/TSX shook off the sharp drop in Bombardier stock following the U.S. decision to initiate punishing tariffs on Bombardier jet imports. The index gained 135.54 points (0.88%) to close at 15,609.66. The financial sector gained 0.2% with climbing bond yields.
WTI crude gained 16 cents U.S. (0.31%) to close at US$52.04 per barrel.
Canada’s agricultural sector performed as follows:
AGT Food and Ingredients—–dn $ 0.19 at $ 24.52
Agrium Incorporated———-up $ 1.78 at $134.60
Buhler Industries————– $ 0.00 at $ 4.45
Maple Leaf Foods————-up $ 0.32 at $ 33.95
Potash Corp. of Sask———up $ 0.31 at $ 24.08
(All figures are in Canadian dollars.)
