Loonie lower, traders focus on Washington and possible government shutdown

TORONTO – The Canadian dollar was lower Friday morning as traders reduce risk going into the weekend amid uncertainty caused by political gridlock in Washington that threatens to shut down the U.S. government over a budget impasse.

The loonie was down 0.06 of a cent to 96.9 cents US.

There was skepticism that Congress can pass a funding bill to keep the federal government operating after Oct. 1, when the government’s new fiscal year starts. Also, the U.S. borrowing limit needs to be raised before Oct. 17.

Conservative Republicans are insisting that the shutdown bill and a separate debt limit measure present an opportunity to demolish the Affordable Care Act, otherwise known as Obamacare, and slash spending.

Commodity prices were mixed with the November crude contract on the New York Mercantile Exchange down 14 cents to US$102.89 a barrel.

Metal prices advanced with December copper on the Nymex ahead two cents to US$3.32 a pound.

December bullion was up $17.40 to US$1,341.50.