Financial Update

Canadian dollar suffers biggest one-day drop since 1962

Sliding commodities send TSX plunging as commodity stocks retreat
· TSX -427.32 pts
· Dow lost all of Tuesdays surge -293 pts
· Dollar -$2.19 $98.49US
The April crude oil contract on the New York Mercantile Exchange lost 4.5 per cent, it's biggest one-day decline since 1991
· Oil -$4.82 to close at $104.60 US per barrel
Gold was slammed with its own biggest single day drop since June 2006, just less than a week after breaking the $1,000-an-ounce barrier for the first time and just two days since hitting a new record high.
· Gold -$59 to $945.30
· Bond Rates: http://www.bankofcanada.ca/en/rates/bonds.html

By David Friend, The Canadian Press

TORONTO - The loonie had its biggest single-day plunge in nearly 46 years on Wednesday, falling 2.19 cents against the American dollar as a bleak outlook for the world's economies also pushed down the price of key commodities such as gold and oil.

Canada's dollar ended the day at 98.49 cents US - the lowest close in a month. The currency had also fallen sharply on Tuesday and continued lower throughout Wednesday's session, but the momentum picked up late in the afternoon.

The last time the dollar had fallen this much was in May 1962 when John Diefenbaker's Conservative government pegged Canada's currency at 92.5 cents US, plus or minus one cent, after dollar volatility raged amidst a recession.

Commodity prices fell amid concerns that the troubles in the United States will spread throughout the world economy, including Asian countries that have been big buyers of Canadian resources.

"We've seen a fairly dramatic selloff in gold prices and as well with crude oil... that's put the Canadian dollar on the defensive at the same time," said George Davis, chief technical analyst at RBC Capital markets.

The slide came despite a report from the U.S. government that oil, gasoline and heating oil inventories were smaller than expected last week. Usually, smaller inventories tend to push up prices.

Gold was The price of bullion tumbled $59, or 5.9 per cent, to finish at $945.30 an ounce. On Monday, gold touched a record high of $1,034 an ounce.