BLBG: Canada’s Dollar Weakens to Six-Week Low as Investor Risk Aversion Rises
Canada’s dollar depreciated to the lowest in more than six weeks after Germany’s failure to get the full amount of bids in a debt auction sparked a selloff in higher-yielding assets.
The currency has fallen 4 percent against the U.S. dollar this month as crude oil, Canada’s largest export, failed to sustain a rally above $100 a barrel and stocks declined. Raw materials such as gold and copper that account for about half the nation’s export revenue fell after manufacturing in China slowed.
“Things are bad,” said Firas Askari, head of currency trading at Bank of Montreal’s BMO Capital Markets in Toronto, in an e-mail message. “With Europe in a debt nightmare, the U.S. with a $15 trillion deficit and even China’s growth showing signs of vulnerability, what will lead us out of this?”
Canada’s currency dropped 0.5 percent to C$1.0430 per U.S. dollar at 8:15 a.m. in Toronto. It dropped to as low as C$1.0454, the weakest level since Oct. 6. One Canadian dollar buys 95.88 U.S. cents.
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
