Canadian dollar hits lowest since 2009 on crude oil fall
January 6, 2015 2:15 am
The Canadian dollar reached its weakest in 5 ½ years against the US dollar as the plunge in crude oil ignited speculation Canada’s growth would lag behind that of its largest trading partner.
The loonie wiped out losses following trading patterns implied it tumbled too much, too fast. But the currency climbed against most other major counterparts on bets its weakness against the greenback would benefit the country as the American economy progresses.
Commodities, interest rates rates, and economic momentum “are conspiring to weaken the Canadian dollar against the US dollar,” said Emanuella Enenajor, Senior Canadian economist at Bank of America Corp.
The loonie dropped as much as 0.5% to C$1.1844 per greenback, the lowest since May 2009, before it swept losses away and fluctuated. It traded at C$1.1763 at 5:00 p.m. (Toronto time), up 0.2%. One Canadian dollar is equivalent to 85.02 US cents.
The currency has erased 1.1% versus the US dollar since December 31 and declined 8.6% in 2014.
The material has been provided by InstaForex Company – www.instaforex.com
The Canadian dollar reached its weakest in 5 ½ years against the US dollar as the plunge in crude oil ignited speculation Canada’s growth would lag behind that of its largest trading partner.
The loonie wiped out losses following trading patterns implied it tumbled too much, too fast. But the currency climbed against most other major counterparts on bets its weakness against the greenback would benefit the country as the American economy progresses.
Commodities, interest rates rates, and economic momentum “are conspiring to weaken the Canadian dollar against the US dollar,” said Emanuella Enenajor, Senior Canadian economist at Bank of America Corp.
The loonie dropped as much as 0.5% to C$1.1844 per greenback, the lowest since May 2009, before it swept losses away and fluctuated. It traded at C$1.1763 at 5:00 p.m. (Toronto time), up 0.2%. One Canadian dollar is equivalent to 85.02 US cents.
The currency has erased 1.1% versus the US dollar since December 31 and declined 8.6% in 2014.
The material has been provided by InstaForex Company – www.instaforex.com
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