By Commodity News Service Canada
Winnipeg, Oct 7 – The Canadian dollar eased against the US dollar at 11:50 CDT Tuesday, reacting to concerns about slow economic growth in Asia and Europe, analysts said.
German data showed a decline of four per cent in industrial output in August, which compares with expectations calling for a 1.5 per cent drop.
The World Bank also said some countries in East Asia Pacific are expected to see slower economic growth this year.
At 11:50 CDT Tuesday, the Canadian dollar was trading at US$0.8952, or US$1=C$1.1171, which compares with Monday’s North American close of US$0.8984 or US$1=C$1.1131.
Further downward pressure came from weak Canadian building permits data, traders said. Statistics Canada reported the total value of building permits issued by Canadian municipalities dropped by 27.3 per cent to C$6.7 billion in August.
Weakness in crude oil and copper was also bearish, though strength in gold prices was supportive.
The Toronto Stock Exchange was down 18.00 points, or 0.12%, at 11:50 CDT Tuesday, to sit at 14,725.12.
