Skip to main content

The Globe and Mail

Loonie ends higher on stronger commodity prices

File photo of the Canadian flag with the U.S. Capitol Building.

Al Behrman/AP Photo

The Canadian dollar closed higher Friday amid uncertainty caused by political gridlock in Washington that threatened to shut down the U.S. government over a budget impasse.

The commodity-sensitive loonie was up 0.10 of a cent to 97.06 cents (U.S.) as prices for gold and copper advanced.

There was skepticism that Congress can pass a funding bill to keep the federal government operating after Oct. 1, when the government's new fiscal year starts. Also, the U.S. borrowing limit needs to be raised before Oct. 17.

Story continues below advertisement

Conservative Republicans are insisting that the shutdown bill and a separate debt limit measure present an opportunity to demolish the Affordable Care Act, otherwise known as Obamacare, and slash spending.

Tthe November crude contract on the New York Mercantile Exchange slipped 16 cents to $102.87 a barrel.

Metal prices advanced with December copper ahead 2 cents to $3.33 a pound.

December bullion was up $15.10 to $1,339.20.

Investors also digested reports showing higher consumer spending and income growth during August – and other data showing slowing consumer confidence.

The U.S. Commerce Department says consumer spending rose 0.3 per cent in August. That's up from a 0.2-per-cent gain in July. Income rose 0.4 per cent in August, the best gain since February and up from a 0.2-per-cent July increase.

The spending and income data are closely watched because consumer spending drives 70 per cent of U.S. economic activity.

Story continues below advertisement

The final read of the September University of Michigan's consumer confidence index came in at 77.5, down from 82.1 in August.

Report an error Licensing Options
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Globe Newsletters

Get a summary of news of the day

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.