FRX; Canadian Dollar Falls on Unfavorable Global Economic Outlook
The Canadian dollar declined against the US dollar today for the fourth consecutive session as concerns for global economic recovery pulled down the prices of stocks and commodities. The Federal Open Market Committee made a statement yesterday about the dismal conditions of the housing sector. Additionally, the bleak scenario of the European banking system added to CAD’s woes. The MSCI World index of shares fell for the third straight day and the prices of crude oil, Canada’s chief export commodity, tumbled by 0.2 percent. This has directly impacted the loonie as it is a growth-tied currency.
USD/CAD traded at 1.0429 at around 22:40 GMT today, a rise from the opening rate of 1.0395. EUR/CAD spiked to 1.2864 from the opening price of 1.2798.
