BLBG: Canada’s Dollar Drops for Third Day, Heads for Weekly Decline as Oil Falls
The Canadian currency was headed for weekly and monthly drops as risk-averse investors sought refuge in the most liquid of assets.
The loonie slid for a third day versus the U.S. dollar as futures on crude, Canada’s largest export, fell yesterday below $90 a barrel for the first time since February.
“We’re starting to see a little bit of a U.S. dollar rebound,” said Aaron Fennell, a futures specialist at Bank of Nova Scotia’s ScotiaMcLeod Inc. unit in Toronto. “Not only on the currency side but also on the commodity side. The Canadian dollar will probably touch parity in the next couple of weeks.”
The Canadian dollar depreciated 0.3 percent to 98.15 cents per U.S. dollar at 8:24 a.m. in Toronto, from 97.90 cents yesterday. One Canadian dollar buys $1.0189. The loonie has fallen 0.3 percent this week and 1.4 percent in June.
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
