BLBG: Canada’s Dollar Depreciates for Second Day as Stocks, Oil Fall
Canada’s currency weakened for a second day as global stocks fell and crude oil sank below $60 a barrel, diminishing the appeal of commodity-linked currencies.
“Risk is off the table,” said Steve Butler, director of foreign-exchange trading in Toronto at Scotia Capital Inc., a unit of Canada’s third-largest bank. “Stocks look soft. After a week straight of U.S. dollar selling, we probably do need a breather.”
The Canadian dollar dropped 0.5 percent to C$1.1298 per U.S. dollar at 7:55 a.m. in Toronto, from C$1.1241 yesterday. One Canadian dollar buys 88.50 U.S. cents.
The MSCI World, a benchmark index for 23 developed markets, slipped 0.6 percent. Crude oil for July delivery fell $1.28 to $60.39 on the New York Mercantile Exchange, after earlier touching $59.53.
The Dollar Index, used by ICE to track the U.S. currency versus the euro, yen, pound, Swiss franc, Canadian dollar and Swedish krona, dropped 3.7 percent last week, the most since March. It gained 0.7 percent today to 80.585.
