Canadian dollar softens on low crude prices, inflation
February 20, 2015 2:03 am
The Canadian dollar tumbled versus the US dollar Thursday, its second straight decrease on fresh decline in crude oil prices, as the Bank of Canada said low oil prices could drive inflation into negative territory.
In her speech Thursday, BOC Deputy Governor Agathe Côté said no need to worry about oil-related deflation and the next decision on interest rate on March 4 had not been preset.
The speech alluded to oil price fall “potentially leading price pressures into negative territory but she did mention that doesn’t necessarily mean that the Canadian economy is heading into a deflationary spiral,” said Bipan Rai, Director of Foreign Exchange Strategy at CIBC World Markets.
The loonie traded at C$1.2498 per greenback or 80.01 US cents, from Wednesday’s C$1.2418 or 80.53 US cents.
The currency somewhat recuperated in afternoon trade, trailing the same paring of losses in the oil market.
The material has been provided by InstaForex Company – www.instaforex.com
The Canadian dollar tumbled versus the US dollar Thursday, its second straight decrease on fresh decline in crude oil prices, as the Bank of Canada said low oil prices could drive inflation into negative territory.
In her speech Thursday, BOC Deputy Governor Agathe Côté said no need to worry about oil-related deflation and the next decision on interest rate on March 4 had not been preset.
The speech alluded to oil price fall “potentially leading price pressures into negative territory but she did mention that doesn’t necessarily mean that the Canadian economy is heading into a deflationary spiral,” said Bipan Rai, Director of Foreign Exchange Strategy at CIBC World Markets.
The loonie traded at C$1.2498 per greenback or 80.01 US cents, from Wednesday’s C$1.2418 or 80.53 US cents.
The currency somewhat recuperated in afternoon trade, trailing the same paring of losses in the oil market.
The material has been provided by InstaForex Company – www.instaforex.com
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