Canadian Dollar Falls Despite Economic Growth

The Canadian dollar ended its up-and-down week on a down note despite strong economic growth reported by Statistics Canada.

The loonie closed at US$0.7200 or US$1=C$1.3888, slightly lower than Thursday's rate of US$0.7214 or US$1=US$1.3861.

Economic data from StatCan showed Canada's economy grew at an annualized rate of 3.3 per cent in the second quarter, a significant improvement over the first quarter's 0.3 per cent growth.

Federal Reserve chairman Kevin Warsh expressed concerns about inflation and hinted that interest rates may need to be raised sooner rather than later.