Home Forex Market News Canadian Dollar Falls to Almost 4-Month Low as Crude Oil Drops...

Canadian Dollar Falls to Almost 4-Month Low as Crude Oil Drops

The Canadian dollar fell to almost a four-month low as crude oil, the nation’s largest export, declined to its lowest point in more than a year.

The currency weakened against all its 16 major peers after a report showed home prices were unchanged in July, the second indicator this week to suggest the housing market is fading as a driver of economic growth. The Bank of Canada said last week it is waiting for strong-enough exports to take the burden of economic growth from over-indebted consumers, prompting speculation it would lag behind the U.S. Federal Reserve raising interest rates.

“The growth story still favors the U.S.,” said Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce, by phone from London. “When you overlay that with negative commodity correlation, then that just provides you with some impetus to be a buyer of the U.S. dollar against Canada.”

The loonie, as the Canadian dollar is called for the image of the aquatic bird on the C$1 coin, fell 0.6 percent to C$1.1003 per U.S. dollar at 9:25 a.m. It reached C$1.1032 on Sept. 9, the lowest since April 28. One loonie buys 90.88 U.S. cents.

Crude oil fell as much as 1.4 percent to $90.43 per barrel in New York, the lowest since May 2013, according to data compiled by Bloomberg.

Canada’s New Home Price Index was unchanged in July from the previous month, Statistics Canada said from Ottawa.

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