Loonie Lower as Canada Enters the Depreciation Fray

Over the past few years, a number of currencies have done what they can to weaken a bit in order to stimulate economies and gain an edge in global trading. Now it appears that Canada is ready to play that game, and the loonie is lower as a result.

Canadian dollar is lower today, following yesterday’s comments from Finance Minister Jim Flaherty about the possibility of depreciation for the loonie.
Acknowledging that it might be good for manufacturing for the Canadian dollar to be “in the nineties” against the US dollar, Flaherty talked about economic recovery and the manufacturing sector. These comments are being taken as a sign that the Canadian government and the Bank of Canada are ready to adopt measures designed to keep the loonie a little weaker.
Also weighing on the Canadian dollar recently is the fact that oil prices continue to struggle. With oil Canada’s main resource a supporter of the loonie, it is little surprise that the currency is having a bit of trouble right now.
At 14:39 USD/CAD is up to 1.0713 from the open at 1.0653. EUR/CAD is also higher, moving up to 1.4603 from the open at 1.4527. GBP/CAD is higher as well, moving up to 1.7579 from the open at 1.7473.

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