Bank of Canada Governor Stephen Poloz said Wednesday a weaker currency will boost non-energy exports, while RBA head Glenn Stevens said the local dollar remains overvalued, and a lower exchange rate is needed to achieve balanced growth.
The Canadian dollar was down 0.31 of a U.S. cent at 79.06 cents US. On the commodity markets, the May crude oil contract was down three cents at US$48.84 a barrel while the April gold bullion contract was down $14.40 at US$1,186.30 an ounce.
Canada's main stock index was little changed on Wednesday as strength in the price of commodities such as oil and bullion helped drive gains in the energy and mining sectors, offsetting weakness in the financial sector.
Total labour costs at Detroit Three plants in Canada have fallen to levels below those at the companies' U.S. factories, a sign the falling value of the Canadian dollar is helping improve this country's competitive position in the auto sector. All-in ...
The Canada dollar was also weaker, down 0.82 U.S. cents at 79.37 cents. Chris King, portfolio manager at Morgan, Meighen and Associates, said the financials sector was pulled down by foreign investors shorting the stocks of Canadian banks.