The Canadian dollar dropped today, declining for the second consecutive session against its US counterpart and the euro, following the slump of prices for crude oil — the major Canada’s export commodity. The loonie is trying to hold ground though, and the currency trimmed its losses as of now.
Prices for crude oil halted its recent rally and were declining for several days due to concerns about oversupply. The Canadian currency often tracks moves of oil prices, meaning that the current drop of crude makes the currency weaker.
The loonie (as the Canadian currency is nicknamed) dropped against other majors initially but is attempting to hold its ground as of now. The currency trimmed its losses versus the US dollar and the euro but continued to fall against the yen. It will be hard for the loonie to stop the decline considering that the market sentiment is currently rather negative due to uncertainty surrounding Greece.
USD/CAD went up from 1.2584 to 1.2634 as of 22:11 GMT today following the rally to the daily high of 1.2697. EUR/CAD gained from 1.4240 to 1.4314. CAD/JPY rose from 94.83 to 95.26.
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