The Canadian dollar was weaker today as the unfolding situation with the Italian debt decreased appetite for risk among participants of the Forex market.
The yield for the 10-year Italian bonds soared to 7.25 percent. That the record since the times when the euro was implemented.
Markets reacted negatively to this event. The Standard & Poorâs 500 Index fell as much as 2.9 percent, while the S&P/TSX Composite Index declined 1.8 percent. Futures on crude oil, the main Canadian export, went down 0.5 percent to $96.56 a barrel in New York after slipping 2.5 percent earlier.
The Canadian dollar was rising against the euro and that’s not surprising, considering all the problems that the Eurozone has. The currency sank against the US dollar and the Japanese yen.
USD/CAD climbed from 1.0088 to 1.0220 and CAD/JPY slid from 76.99 to 76.06 GMT today as of 21:15. Meanwhile, EUR/CAD rose from 1.3955 to 1.3844, paring its previous drop to 1.3809.
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