VANCOUVER (NEWS1130) – The loonie is no longer soaring above parity with the American dollar. It closed at 99.41 cents US today, its lowest level since January. Stocks and commodities were also down today.
The US Federal Reserve released a report today saying, “There are significant downside risks to the economic outlook.”
Camilla Sutton, chief currency strategist at Scotia Capital, says what happened today isn’t the long-term prognosis. “Canada’s reacting right now to global broader trends. The external headwinds are significant for the Canadian economy and the Canadian dollar.”
The Reserve delivered another round of stimulus, selling 400 billion of its shorter-term securities to purchase longer-term holdings, in a move that could ultimately reduce rates on mortgages and other loans.