Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Canadian dollars are pictured in Vancouver, Sept. 22, 2011.

JONATHAN HAYWARD/THE CANADIAN PRESS

The Canadian dollar closed lower Friday amid data that showed the economy grew more than expected in the second quarter.

The loonie was down 0.22 cents (U.S.) at 91.97 cents as Statistics Canada reported gross domestic product ran up at an annual rate of 3.1 per cent, higher than the 2.7-per-cent read that economists had expected.

First-quarter GDP growth, which was affected by a severe winter, was revised down to 0.9 per cent, compared with an earlier reading of 1.2 per cent.

Story continues below advertisement

On a monthly basis, GDP climbed 0.3 per cent in June versus the 0.2-per-cent rise that had been forecast, the highest quarterly gain since the third quarter of 2011.

The American currency gained strength during the morning amid another sign of economic weakness in Europe. Inflation in the 18 countries that use the euro sank to 0.3 per cent in August, down from 0.4 per cent in July and is the lowest since October, 2009.

Inflation has been so low for so long that it has raised fears of deflation, a crippling downward price spiral that comes about when people hold off buying things because they think prices will fall further.

In the U.S., consumer spending remained lacklustre in July as auto sales slipped from eight-year highs and retail sales stalled. Spending dropped 0.1 per cent, against the gain of 0.3 per cent that generally had been expected.

Other data showed a sharp uptick in manufacturing activity in the American Midwest. The Chicago Purchasing Managers Index surged to 64.3 in August from 56.5 in July.

Investors also watched the Ukraine conflict for signs of further escalation after the country's president said that Russian forces had entered the southeastern part of the country, which had largely escaped earlier fighting between Ukraine forces and pro-Russian militias.

European Union foreign ministers met Friday to weigh adopting a tougher stance on the Ukraine crisis amid increasing calls to beef up economic sanctions against Russia.

Story continues below advertisement

The Canadian dollar has had a strong week, up about six-tenths of a cent with the currency benefiting from a deal that will see American fast-food giant Burger King buy Canadian coffee and doughnut chain Tim Hortons for $12.5-billion. The loonie has been pushed higher in the past by such big corporate takeovers as foreign buyers acquiring a Canadian company need Canadian dollars to close the deal, boosting demand for the loonie on financial markets.

On the commodity markets, October crude in New York gained $1.41 to $95.96 a barrel. December gold backed off $3 to $1,287.40 an ounce while December copper gained 1 cent to $3.16 a pound.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies