Loonie Falls Despite Canadian Economic Growth

The Canadian dollar ended its week on a down note despite economic growth in Canada. The loonie finished at US$0.7200 or US$1=C$1.3888 on Friday, compared to US$0.7214 or US$1=US$1.3861 on Thursday.

Canada's economy grew at an annualized rate of 3.3 per cent in the second quarter, up from 0.3 per cent growth in the first quarter, according to Statistics Canada. However, this positive data had little impact on the loonie's value.

The US Dollar Index was also up, increasing by 0.51 points at 99.67. Additionally, Federal Reserve chairman Kevin Warsh expressed concerns over inflation and hinted that interest rates may need to be raised sooner rather than later in a press conference.