BLBG: Canadian Dollar Drops From Highest Level in Almost Month as Oil Declines
The Canadian dollar fell from its highest level in almost a month versus its U.S. counterpart as commodities including crude oil and copper dropped.
The loonie, as the currency is also known, rose yesterday the most in two weeks as evidence of U.S. and Chinese manufacturing strength spurred speculation that the global economy will weather Europe’s sovereign-debt turmoil. European stocks fell today on concern the region’s banks will need to increase capital ratios.
“It’s a risk-off day,” Neil Mellor, a strategist at Bank of New York Mellon Corp., said by phone from London. “The hurdles that the euro has to overcome over the next few weeks are huge. It does point to a positive U.S. dollar view,” at the expense of higher-yielding currencies such as the Canadian dollar, Mellor said.
The loonie depreciated 0.4 percent to C$1.0148 per U.S. dollar at 8:03 a.m. Toronto time. One Canadian dollar buys 98.54 U.S. cents. The Canadian currency advanced 0.8 percent yesterday in the biggest gain in two weeks. It touched C$1.0077, the strongest level since Dec. 8.
Futures on crude oil, Canada’s largest export, dropped 0.6 percent to $102.34 a barrel in New York. Copper for three-month delivery decreased 1.1 percent to $7,706 a ton on the London Metal Exchange. Canada derives about half of its export revenue from the sale of raw materials.
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 dliedtka@bloomberg.net
