BUSINESS

Loonie moves lower against U.S. greenback on disappointing GDP numbers

07/30/2012 09:16 EDT | Updated 09/29/2012 05:12 EDT
TORONTO - The Canadian dollar weakened Tuesday after a report from Statistics Canada showed the domestic economy grew at a disappointing rate.

The agency said gross domestic product was up by 0.1 per cent in May, after rising 0.3 per cent in April. Economists had expected a stronger showing in May of 0.2 per cent.

The Canadian dollar fell 0.11 of a cent to 99.71 cents US.

"Manufacturing was a notable miss, falling 0.5 per cent in real output despite an earlier reported gain in real shipments," said CIBC chief economist Avery Shenfeld in a note.

"We had expected a larger rebound in utilities, a sector that has still not done much to make up for a big dive during the abnormally mild winter."

Attention is also focused on a meeting of the U.S. Federal Reserve, over which investors appear unsure whether the Fed will act again to kick-start the economy.

The anticipation comes ahead of a Thursday meeting at the European Central Bank.

In commodities, the September crude contract on the New York Mercantile Exchange was down $1.72 to US$88.06 a barrel near midday. Earlier in the session, crude had been above Monday's close.

September copper moved up 1.5 cents to US$3.42 a pound while August gold ended off $9.20 at US$1,610.50 an ounce.