Canadian Dollar Maintains Decline amid Concerns for Economic Growth

The Canadian dollar demonstrated a big drop against its US counterpart yesterday and continued to fall today on concerns that Canada’s economic growth will trail that of the United States. The currency was also weak against other majors, including the euro and the yen.
The US economy is expected to expand 2 percent in 2013. At the same time, analysts believe that the Canadian economy will grow just 1.6 percent. Such outlook was not very supportive for the loonie. Yesterday’s drop of crude oil did not help the currency either.
Not all economists are concerned about the loonie’s drop. The currency was rising previously and some specialists believe that the rally may resume after a small correction.
USD/CAD rose from 1.0178 to 1.0186 and EUR/CAD advanced from 1.3149 to 1.3174 as of 1:31 GMT today. CAD/JPY went down from 100.56 to 100.23.

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