The Canadian dollar continues to weaken against its U.S. counterpart as the turmoil in Greece increased the global demand for the safety and pushed down the appeal of the currencies tied to growth for investors.
The loonie, as the Canadian currency nicknamed for the image of the aquatic bird on the C$1 coin, tends to follow the moves of the commodity prices and the stocks. The Standard & Poorâs 500 Index dropped 0.6 percent, while previously it fell 1.3 percent. June delivery for crude oil, the biggest export of Canada, declined 3.7 percent to $79.72 on the New York Mercantile Exchange.
The troubles in Greece threaten to weaken the whole European Union economy, increasing global risk aversion sentiment and draining the loonie of its strength. At the same time, Greece’s woes together with the expanding U.S. economy boost the greenback. Some analysts are even saying that the parity between the Canadian dollar and the U.S. currency is thing of the past.
USD/CAD rose to 1.0309 as of 23:38 GMT today after opening at 1.0241. EUR/CAD traded at about 1.3218 after it opened at 1.3300.
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