As loonie sags, pressure mounts on Ottawa to act

The dollar closed at 69.71 cents U.S. Wednesday putting pressure on Ottawa to dig deep into its economic stimulus tool kit.

“We’re paying very close attention to the economy,” he said. “We believe our plan to reduce taxes, our plan to add money to the Canada Child Benefit, and our plan to significantly increase investments in infrastructure will make a material difference.”

The Liberals promised during last fall’s election campaign to pour an additional $60 billion into infrastructure projects over 10 years. But less than half that money, $17.4 billion, was allocated to flow during the Liberals’ first term.

However, The Canadian Press reported the government is actively considering speeding up its infrastructure investments. The details of any new spending will be unveiled in the federal budget, likely sometime in mid to late March, the press agency reported.......

“Unfortunately, it’s going to take a weaker exchange rate to be more competitive in those other industries.”

Winners and losers

As the loonie continues its slide, here are the winners and losers of a weaker dollar. — The Canadian Press

Winner: The mining sector

Teck Resources

Vancouver mining company Teck Resources credits the low Canadian dollar for helping the company weather the downturn in commodity prices, with the company able to sell its copper and coal at U.S. prices while pay operating costs in Canadian.