BLBG: Canadian Dollar Drops to One-Year Low as Crude Oil Price Extends Decline
Canada’s dollar declined to the lowest level in more than a year on global economic concern and as crude oil fell below $76 a barrel.
The Canadian dollar fell more than 3 percent versus the greenback over the past five days, dropping along with the currencies of other commodity exporters including Mexico, Brazil, New Zealand and Australia as raw materials weakened.
“Concerns are now fully spilling into recession fears,” said Tom Levinson, a currency strategist at ING Groep NV, by phone today from London. “That’s clearly bad for commodity currencies and exporters.”
The Canadian currency depreciated 0.2 percent to C$1.0567 per U.S. dollar at 7:59 a.m. in Toronto, from C$1.0547 yesterday. It touched C$1.0576, the weakest level since September 2010. One Canadian dollar buys 94.63 U.S. cents.
Crude for November delivery declined as much as 2.8 percent to $75.76 a barrel in electronic trading on the New York Mercantile Exchange, the lowest level since Aug. 9.
To contact the reporter on this story: Chris Fournier in Halifax, Nova Scotia, at cfournier3@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
