The Canadian dollar fell today against its US peer and the Japanese yen as risk appetite came off the markets and crude oil, as well as other commodities, declined. The currency gained on the euro.
April futures for crude, the major Canada’s export, slipped to $92.63 per barrel in New York, the lowest price since January 7. The Standard & Poorâs 500 Index went down 0.9 percent. The S&P GSCI Index of 24 commodities edged down 1.7 percent. Raw materials make up about half of Canada’s export revenue.
The major reason for fear on the Forex market was yesterday’s minutes of the Federal Reserve’s policy meeting. Economists thought that the Fed gave hints in the minutes that some policy members desire to drop stimulus early. Such prospects scared traders and made them shun riskier currencies.
USD/CAD went up from 1.0165 to 1.0182 as of 22:34 GMT today and its daily high of 1.0205 was highest since July 25. CAD/JPY went down from 91.96 to 91.36. At the same time, EUR/CAD fell from 1.3499 to 1.3429.
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