RTTN:Canadian Dollar Down As Oil Prices Drop On Cyprus Woes
The Canadian dollar lost ground on Friday, as oil prices fell after Cyprus authorities struggled to find an alternative plan to raise EUR 5.8 billion in exchange for an European Union bailout.
The Parliament is expected to begin debate today on a bill that would help the government to find the money needed to unlock the EU-IMF aid. Without the funds, Cyprus faces the risk of an imminent collapse of its financial sector.
The European Central Bank on Thursday warned Cyprus that it may have to cut off liquidity to Cypriot banks if the county fails to agree on a new bailout plan by Monday.
Cyprus Finance Minister Michael Sarris said today that the country will not receive requested financial aid from Russia.
Crude for April delivery fell 0.13 cents or 0.14 percent to $92.64 per barrel as of 4:41 am ET.
The loonie touched 1.0722 against the aussie for the first time since February 29, 2012. The loonie may break 1.0788 peak set last year, if it extends fall.
The loonie that ended yesterday's deals at 1.0254 against the greenback reached a 2-day low of 1.0267. If the loonie falls further, it may break 1.035 level.
The loonie fell to 1.3261 against the euro after climbing to 1.3206 around 1:40 am ET. On the downside, 1.335 is seen as the next target level for the loonie.
Germany's business confidence fell unexpectedly to 106.7 in March, which was the first fall in five months, reports said citing a survey from the Ifo Institute today.
Economists were expecting the index to rise to 107.8 from a 10-month high of 107.4 in February.
The Canadian unit fell to 91.83 against the yen, its lowest since March 7. The next downside target level for the loonie is seen at 91.00.
