By Commodity News Service Canada
WINNIPEG, Sept. 26 The Canadian dollar was softer relative to the US dollar Friday morning, falling below the key level of 90 cents U.S.
The weakness in the loonie was linked to an upward revision to U.S. gross domestic product data for the second quarter of 2014, analysts said. The revision indicates more economic growth than expected, which could result in the U.S. Federal Reserve raising interest rates sooner than first anticipated.
At 8:47 CDT Friday the Canadian dollar was at U.S.$0.8989 or U.S.$=C$1.1125, which compares with Thursday’s North American close of U.S.$0.9003 or U.S.$=C$1.1108.
Recent dovish comments from Bank of Canada officials continued to undermine the Canadian dollar, as did global economic worries.
Weakness in gold was also bearish, though some spillover support came from the firmer tone in crude oil and copper, traders said.
The TSX was down 31.22 points, or 0.21%, at 8:47 CDT Friday morning to sit at 14,862.35.
