C$ hits 19-month low as falling oil prices offset GDP gain

Shoaib Ur Rehman December 22, 2018

TORONTO: The Canadian dollar weakened to a 19-month low against its US counterpart on Friday as stocks and the price of oil fell, offsetting data showing stronger than expected growth in the domestic economy.

The Canadian economy expanded by 0.3 percent in October from September, pushed higher by strength in manufacturing, finance and insurance, Statistics Canada data indicated. Analysts had predicted an increase of 0.2 percent.

Separate data from Statistics Canada showed that the value of Canadian retail trade rose by 0.3 percent in October from September, thanks largely to higher sales at motor vehicle dealers and gasoline stations.

Stocks were pressured by increasing worries of slowing global growth and the threat of a US government shutdown.

The price of oil, one of Canada’s major exports, extended its recent decline as global oversupply kept buyers away from the market ahead of the long holiday break. The price of US crude

was down 1.1 percent at $45.36 a barrel.

Copyright Reuters, 2018
 

 

 

 

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