The Canadian dollar was weak against its major counterparts today and was not able to rally even against the extremely soft US dollar. The most likely perpetrator responsible the currency’s decline was the drop of crude oil prices.
While many commodities rallied during the Thursday’s trading session, crude oil was not one of them. Prices for crude dropped and dragged the Canadian currency along with them. The Canadian economy strongly relies on oil to get the major part of Canada’s export revenue. As a result, the drop of oil prices does not bode well for Canada’s economy.
The Federal Reserve’s policy announcement made the loonie climb against the greenback for a short while but the rally was short-lived. Against other major currencies, the loonie performed poorly, though it fared a bit better against some commodity currencies.
USD/CAD traded at the opening level of 1.3171 as of 23:29 GMT today after dropping to 1.3072 (the weakest since August 21). EUR/CAD jumped from 1.4870 to 1.5017. At the same time, AUD/CAD went down from 0.9472 to 0.9457.
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