Canadian dollar continues to weaken today, thanks in large part to the fact that oil prices are falling. Oil is below $30 a barrel, and the loonie hit its lowest level in 13 years in earlier trading.
Oil is one of the major cornerstones of the Canadian economy. It is a major export, including to the United States. When oil prices drop, the Canadian economy struggles, and the loonie heads lower against its major counterparts.
Today, crude oil is below $30 a barrel, marking the continuation of a decline since oil hit $100 a barrel in the summer of 2014. With Saudi Arabia and OPEC refusing to cut production, and with increased production in the United States, and the end of an Iran oil ban, cheap oil is causing problems for Canada. Concerns about the housing market are on the rise, in addition to general economic concerns.
Indeed, in earlier trading the loonie touched a 13-year low against the greenback. Loonie is still trading down against the US dollar, and is down against other major counterparts as well.
At 14:36 USD/CAD is higher, moving up to 1.4456 from the open at 1.4363. EUR/CAD is also higher, gaining ground to 1.5826 from the open at 1.5605. GBP/CAD is moving up, heading to 2.0754 from the open at 2.0699. CAD/JPY is down, falling to 80.9700 from the open 82.1980.
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