The Canadian dollar was one of the most affected currencies by a new wave of risk aversion today as the country’s currency has a strong correlation with stocks and commodities markets, which fell significantly on statements regarding financial restrictions to be imposed by China and the United States.
After a Chinese statement suggesting that economic growth will be controlled in the nation and a White House statement proposing stricter policies for banks in the country, the Canadian dollar fell drastically, as stocks and commodities, markets with high influence on the loonie’s rates, declined as risk aversion rose.
USD/CAD traded at 1.0514 as of 00:53 GMT from a previous rate of 1.0447 in the intraday comparison.
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