The Canadian dollar closed at 74.92 cents (U.S.), down 0.51 cents from Tuesday's close of 75.43 cents (U.S.). Earlier in the day, it tested a new 11-year low of 74.88 cents (U.S.).
Lower oil prices continue to be the biggest drag on the loonie. The weekly U.S. Energy Information Administration (IEA) report showed that the oil glut south of the border is continuing. There was other news working against the commodity today, too. A major gauge of Chinese manufacturing known as the Caixin/Markit China Manufacturing Purchasing Managers' Index fell to 47.0 in September. That is the lowest since March 2009. Levels below 50 suggest a contraction. West Texas Intermediate (WTI) crude closed down $1.88 (U.S.) at $44.48 (U.S.).
The Canadian dollar was also reacting on Wednesday to a Statistics Canada retail sales report that showed sales increasing at 0.5 per cent in July, below what economists were expecting. July is the month that millions of Canadians received the retroactive Universal Child Care Benefit payment from Ottawa. It was expected that money would be a boon for retailers as Canadians would feel more comfortable spending that money.
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