BLBG:Canadian Dollar Falls as Contagion Concern Propels Risk Aversion
Canada’s dollar depreciated for a fourth day as speculation Greece’s inability to remain in the euro zone will lead to a widening of the euro region’s debt crisis drove demand for the safety of the U.S. dollar.
The currency fell to the lowest in almost four months versus the greenback in the longest string of losses this year as Spain’s borrowing costs rose at an auction. Economists predict a Statistics Canada report will show wholesale sales slowed in March.
“What we’re seeing in foreign-exchange markets is strong demand for the U.S. dollar,” said Steven Saywell, head of foreign-exchange strategy for Europe at BNP Paribas SA, by phone from London. “The trend is sell euros, sell the commodity linked currencies, buy dollars, sell risk generally. The Canadian dollar is likely to weaken here.”
The currency, nicknamed the loonie, dropped 0.3 percent to C$1.0153 per U.S. dollar at 7:36 a.m. in Toronto. It fell to C$1.0154, the least since Jan. 23. One Canadian dollar buys 98.49 U.S. cents.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
