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Loonie moves higher as it backs away from steep losses made last week


TORONTO — The Canadian dollar moved higher early Monday, recovering some of its steep losses from last week, amid growing concerns about the global economy.

The loonie was up 0.09 of a cent to 96.30 shortly before stock markets opened.

The shift higher came after the currency finished last week at a 5-1/2 month low of 96.21 cents US.

The loonie had lost more than five cents in a little over a month as nervous traders avoided risk, flocked to the U.S. Treasury and reduced expectations for a rate hike.

The Bank of Canada is widely expected to leave its key rate unchanged at one per cent on Tuesday, and governor Mark Carney could also end up discouraging any thought of a rise in interest rates this year because of slowing economic conditions.

In commodities, crude prices held below the US$83 a barrel level with the July contract on the New York Mercantile Exchange off 92 cents to US$82.31 a barrel.

The July copper contract on the Nymex fell two cents to US$3.29 a pound. Copper is widely viewed as a key economic barometer as it is used in so many industries and China has been the biggest purchaser of the metal.

Bullion prices for August were lower with the contract falling $3.10 to US$1,619 an ounce.