BLBG: Canadian Dollar Drops to Lowest in Four Days as Crude Declines
June 12 (Bloomberg) -- Canada’s dollar depreciated to the weakest in four days as crude oil, the nation’s biggest export, fell a day after the central bank’s governor voiced concern about the strength of the currency.
“There are a number of factors that are providing reasons for the selling,” said Matthew Strauss, a currency strategist at RBC Capital Markets in Toronto. “One is the turnaround in commodity prices, especially with oil prices coming off very sharply.”
The Canadian currency weakened as much as 2 percent to C$1.1247, the lowest level since June 8, and traded at C$1.1244 per U.S. dollar at 8:27 a.m. in Toronto, from C$1.1024 yesterday. One Canadian dollar buys 88.94 U.S. cents.
The loonie, as Canada’s dollar is known, was the worst performer against the greenback today among the 16 most-active currencies tracked by Bloomberg. Bank of Canada Governor Mark Carney yesterday reiterated that the recent rise in the loonie could hamper growth in the world’s eighth-largest economy.
