BUSINESS

Canadian dollar continues to drift lower on interest rate expectations

10/25/2013 09:25 EDT | Updated 01/23/2014 06:58 EST
TORONTO - The Canadian dollar lost ground for a third day Friday, falling to its lowest level since early September as traders continued to react to the Bank of Canada's move to dampen interest rate hike expectations.

The commodity-sensitive loonie was down 0.27 of a cent to 95.65 cents US after the Bank of Canada removed its tightening bias Wednesday and downgraded its economic forecast through 2015.

The move led analysts to believe that interest rate hikes are off the table until 2015, leading the loonie to fall 1.5 cents this week.

Commodities were mixed with December crude ahead 74 cents to US$97.85 a barrel.

December gold bullion rose $2.20 to US$1,352.50 an ounce while December copper was off the lows of the session to close up a penny at US$3.27 a pound.

Meanwhile, traders continued to take in economic reports that were held up during the partial U.S. government shutdown for more than half of October.

The latest data showed that durable goods orders for September were up 3.7 per cent. Minus transportation orders, durable goods orders actually slipped 0.1 per cent.