By Commodity News Service Canada
Winnipeg, November 28 – The Canadian dollar was lower against its American counterpart at midday Friday, as positive data detailing Canada’s economic growth couldn’t keep up with the impact of tumbling oil prices.
The loonie was at US$0.8744 or US$1 = C$1.1436 at 11:55 CST Friday morning.
Oil slumped to price levels not seen in four and a half years, with some analysts predicting it will eventually sink to US$60.00 a barrel in the coming months. OPEC’s decision to leave production activity alone is widely seen as a strategy to deal with a large influx in global players on the oil-exploration and development scene.
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On the home front, new numbers show the Canadian economy beat the 2.1 percent growth projections in the recent quarter. Consumer spending and long-term investments helped churn out an annualized rate of 2.8 percent.
On the commodity markets, the February gold contract dipped US$24.40 to $1,173.10 an ounce while March copper was unchanged at US$2.89 a pound. The January crude oil contract slumped US$5.62 to US$68.14 a barrel.
At 11:55 CST Friday morning, the Toronto Stock Exchange was down 135.75 points to 14,786.69.
