Bank of Canada on the Verge of Increasing Interest Rates Affecting the Loonie
Toronto- The loonie sprung up amid signals from the Bank of Canada plotting on increasing interest rates, meanwhile Toronto‘s main stock index continued its abrupt decline.
The governor of the Bank of Canada Stephen Poloz and deputy governor Carolyn Wilkins made comments on the Canadian economy gathering momentum and the following day, the Canadian dollar went up from one U.S cent to an average trading price of 75.54 cents US.
The loonie has maintained this level since late February, when it dropped below 76 cents US.
At the south border, investors ended a two day drop for tech companies as U.S. stocks course diverted.
The S&P 500 index rose 10.96 points to 2,440.35 and the Dow Jones industrial gained an average of 92.80 points at 21,328.47, which were all record highs. The NASDAQ composite index moved 44.90 points up to 6,220.37.
Regarding commodities, the July crude contract rose up 38 cents at US$ 46.46 per barrel and on the other hand, the July natural gas contract experienced a decrease of six cents at US$2.97 per barrel.
The August gold contract returned 30 cents back to US$1268.60 an ounce meanwhile the July copper contract deducted two cents at US$2.60 a pound.