BUSINESS

Loonie Hits Lowest Point Since September, 2009

01/21/2014 09:07 EST | Updated 01/25/2014 04:01 EST

TORONTO -- The Canadian dollar fell Tuesday, a day before the Bank of Canada was set to make its latest announcement on interest rates.

The loonie hit 90.77 cents U.S. Tuesday morning, its lowest point since September, 2009, before bouncing back to around 90.91 cents U.S.

Investors will be closely watching what the central bank will say Wednesday about interest rates and its neutral stance on the future direction of its key rate.

It has been a tough month so far for the loonie, which is down more than 2 1/2 cents US from the end of 2013, falling to levels that haven't been seen in more than four years.

The Canadian dollar has been supported by the BoC's dovish tone on interest rates and disappointing trade and employment data, but has faced pressure from an American currency.

The U.S. Federal Reserve has started to cut back on is monthly bond buyback program to $75 billion in January.

Meanwhile, commodities markets were still digesting data that showed a slowdown in the Chinese economy.

The world's second-largest economy reported Monday that its annualized growth rate was 7.7 per cent in the fourth quarter, down from the previous quarter's 7.8 per cent

Gold took back some of the gains it made Monday as February bullion dropped $14 to US$1,237.90 an ounce on the New York Mercantile Exchange.

The February crude oil contract moved up 15 cents to US$94.52 a barrel, while March copper was down three cents to US$3.32 a pound.

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