Bank Of Canada On The Verge Of Increasing Interest Rates Affecting The Loonie

The loonie leaped up in the midst of intense indications from the Bank of Canada plotting to increase interest rates. In the intervening time, Toronto‘s main stock index continued its rapid debility.

The governor of the Bank of Canada Stephen Poloz and deputy governor Carolyn Wilkins, made commentaries on the Canadian economy rallying impetus and the following day, the Canadian dollar went up from one U.S cent to an average trading price of 75.54 US cents.The loonie has upheld this level since late February, when it plunged below 76 US cents.

At the south border, investors concluded a two day descent for tech companies as U.S. stocks took a diverting course.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.

On the subject of commodities, the July crude contract spiked up 38 cents at US$ 46.46 per barrel and on the other hand, the July natural gas contract found itself waning into a decrease of six cents at US$2.97 per barrel.

The August gold contract reverted 30 cents back to US$1268.60 an ounce, in the interim the July copper contract withheld two cents at US$2.60 a pound.

J C Loum