(The Canadian Press) TORONTO – The Canadian dollar rose Thursday while the greenback stepped back after U.S. lawmakers passed legislation that averts a potential default and reopens the American government following a partial shutdown.
The loonie was up 0.35 of a cent to 97.12 cents US after the Senate and House of Representatives passed a measure Wednesday night that reopens the government through Jan. 15 and permits the Treasury to borrow normally through Feb. 7 or perhaps a month longer.
It includes nothing for Republicans demanding changes to President Barack Obama's signature health-care overhaul.
The deal was reached just before a deadline when the U.S. borrowing authority would have expired, meaning the government would start to run out of money to pay creditors.
However, enthusiasm for the bipartisan deal was muted by the realization that the two sides will likely be bickering again in just a matter of months.
The uncertainty has not been removed, just pushed a few months down the road, with the borrowing authority extended to early February and the budget lasting to mid-January,`` observed Simon Smith, chief economist with FxPro in London.
``The honeymoon period will be short, if indeed there is one, before the negotiations and demands start again.''
The November crude oil contract on the New York Mercantile Exchange lost 56 cents to US$101.73 a barrel.