Loonie up despite employment data; U.S. dollar weakens
Posted April 8, 2011 9:15 am.
This article is more than 5 years old.
TORONTO, Ont. – The Canadian dollar surged to a fresh three and a half year high Friday morning despite an employment report for March that missed expectations.
A weak U.S. dollar and higher commodity prices helped send the loonie up 0.44 of a cent to 104.77 cents (U.S.) after earlier going as high as almost 105 cents.
Statistics Canada reported that the economy shed 1,500 jobs for the first time since last September, although the unemployment rate did manage to slip to 7.7 per cent from 7.8 the previous month. Economists had expected an overall gain of about 30,000 jobs during March.
Crude prices surged as fighting in Libya damaged oil fields in the OPEC nation with the May contract on the New York Mercantile Exchange up $1.37 to $111.67 a barrel, its highest level in about two-and-a-half years.
A weak U.S. dollar also helped send the May gold contract on the Nymex up $13.50 to $1,472.80 an ounce.
Analysts said the bout of weakness in the U.S. dollar is likely not going away anytime soon.