Canadian dollars coins are shown with U.S dollars bills April 6, 2010 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
December 20, 2013 - 6:01 AM
TORONTO - The Canadian dollar was lower Friday as traders took in data showing rising inflation during November while the greenback advanced on a report showing higher than expected third-quarter economic growth.
The loonie was down 0.44 of a cent to 93.32 cents US as Statistics Canada said that the Consumer Price Index rose 0.2 per cent in Novembe.r amid higher gasoline prices, following a 0.1 per cent decline in October.
The agency said that the CPI rose 0.9 per cent in the 12 months to November, following a 0.7 per cent increase in October. It added that November marked the seventh time in the last 13 months in which the CPI increased less than one per cent on a year-over-year basis.
Meanwhile, the U.S. Commerce Department said that the economy grew at a solid 4.1 per cent annual rate from July through September, the fastest pace since late 2011 and significantly higher than previously believed. Much of the upward revision came from stronger consumer spending.
The final look at growth in the summer was up from a previous estimate of 3.6 per cent.
On the commodity markets, February crude on the Nymex lost 30 cents to US$98.74 a barrel.
Gold prices were lower after plunging more than $40 on Thursday to three-year lows. The February contract on the New York Mercantile Exchange was down $2 to US$1,191.60 an ounce.
Gold prices have fallen sharply this week after the U.S. Federal Reserve announced it will start to end its latest asset-purchase program.
Policymakers decided to $10 billion the Fed’s monthly purchases of U.S. Treasuries and mortgage-backed securities, starting in January. It also said it “will likely reduce the pace of asset purchases in further measured steps at future meetings.”
They also Fed emphasized that its main interest rate would remain low until U.S. unemployment falls below 6.5 per cent. It’s now seven per cent.
Quantitative easing had supported gold prices because of inflationary fears. But inflation is tame in many countries and data out earlier this week showed the consumer price index rising at an annual rate of only 1.2 per cent, significantly below the Fed’s inflation target of two per cent.
Gold prices are down 29 per cent so far this year.
March copper rose a cent to US$3.31 a pound.
News from © The Canadian Press, 2013