Loonie Takes Step Back Amid Strong GDP Report

The Canadian dollar took a step back on Friday, despite positive economic data from Statistics Canada. The loonie finished at US$0.7200 or US$1=C$1.3888, down from Thursday's close of US$0.7214 or US$1=US$1.3861.

The Canadian economy grew at an annualized rate of 3.3 per cent in the second quarter, according to Statistics Canada, a significant improvement over the first quarter's growth rate of 0.3 per cent.

Federal Reserve Chairman Kevin Warsh expressed concerns about inflation and hinted that interest rates may need to be raised sooner rather than later. The US Dollar Index rose by 0.51 points to 99.67, while oil prices declined due to lower demand.