CP: Canadian dollar down half a cent amid lower commodities
TORONTO — The Canadian dollar was lower Monday morning as oil prices declined and the American dollar strengthened against other currencies.
The loonie fell 0.48 of a cent to 103.68 cents US.
Oil prices headed lower even as Saudi Arabia announced Sunday that it cut daily output to 8.3 million barrels in March from 9.1 million barrels in February because of what it saw as excess global supply. The moved dampened hopes OPEC will soon boost its output to help bring down prices.
The May crude contract on the New York Mercantile Exchange was down $1.34 to US$108.32 a barrel.
Other commodity prices headed lower with the May copper contract on the Nymex down a cent to US$4.24 a pound.
Bullion backed away from Friday's latest record high close, as the June contract in New York declined $5.10 to US$1,480.90 an ounce.
Meanwhile, there was renewed focus on Greece's debts in the wake of suggestions from a number of people that the country would be better off looking for a way to renegotiate its debts as a way of relieving its crisis.
Also, a Greek newspaper reported that Greece has asked the International Monetary Fund and the European Union to begin talks on restructuring its debt.
Meanwhile, the pro-EU conservative National Coalition Party topped Sunday's vote in Finland but the coalition it previously belonged to no longer has a parliamentary majority. There are worries that a new government including a euroskeptic party which made big gains could derail a bailout which is currently in the works for Portugal.
"The real fear is that anti-Euro aid sentiment is building across Europe, which should it spill into countries like Germany could have significant ramifications," said Scotia Capital chief currency strategist Camilla Sutton.
The euro traded at US$1.4291, down sharply from US$1.4429 late Friday.
Traders also took in news that China's central bank moved during the weekend to further tamp down inflation, which jumped to a 32-month high in March. On Sunday, the People's Bank of China announced that the deposit reserve ratio for most banks would be raised to 20.5 per cent -- the fourth reserve increase this year.
