MY: Canadian dollar lower amid eurozone concerns, falling commodities
TORONTO - The Canadian dollar was lower Friday amid a new round of worries connected with the eurozone's debt crisis, while demand worries pressured commodity prices.
The loonie was down 0.22 of a cent at 98.72 cents US as traders also looked ahead to next week's interest rate announcement from the Bank of Canada. Most analysts don't expect the central bank to hike rates until late next year at the earliest.
Risk sentiment took a hit and the U.S. currency strengthened after Cyprus' president said he will ask the European Union to do more to help the Mediterranean country out of its economic crisis. President Nicos Anastasiades didn’t specify what kind of help he will seek.
Cyprus has seen its share of an international bailout swell to €13 billion according to a draft document by its creditors. That's almost double what it was initially meant to pay.
Commodities weakened amid demand concerns.
May crude on the New York Mercantile Exchange dropped $1.60 to US$91.91 a barrel.
Oil continued to lose traction after the International Energy Agency lowered its forecast for global oil demand in 2013 by 45,000 barrels to 90.6 million barrels a day. Its predictions were similar to those made earlier this week by OPEC and the U.S. Energy Department.
May copper stepped back five cents to US$3.38 a pound and June bullion fell $34.90 to US$1,530 an ounce.
Gold has fallen this week after Goldman Sachs dropped its forecast for 2013 to US$1,545 an ounce, down from a prior forecast of $1,610. Also, minutes of the latest Federal Reserve meeting showed members were at odds about when to stop quantitative easing.
In economic news, U.S. retail sales for March were down 0.4 per cent. Economists had expected flat reading following a 1.1 per cent rise in February.
