BLBG: Canada’s Dollar Falls to Lowest in Two Weeks on Euro Region’s Borrowing
Canada’s currency sank to the lowest in more than two weeks against its U.S. counterpart as concern European borrowing costs were reaching unsustainable levels sapped demand for riskier assets.
The nation’s dollar fell as global stock and commodity prices weakened before Statistics Canada was scheduled to report that factory sales fell in October. Higher-yielding assets declined after Italian borrowing costs increased to the highest since 1997 at a debt auction and Spanish banks’ borrowings from the European Central Bank climbed by the most in a year.
The loonie traded 0.3 percent lower at C$1.0373 at 8:20 a.m. Toronto time after reaching $1.0384, the weakest since Nov. 28 when it touched C$1.0474. One Canadian dollar buys 96.39 U.S. cents.
Futures on the Standard & Poor’s 500 Index declined 0.1 percent and the MSCI World Index of stocks (MXWO) retreated 0.6 percent. The S&P GSCI Index of raw materials dropped 1.3 percent.
To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
