The Canadian dollar dropped today, reaching the lowest level since March 2009 against the US dollar, as crude oil prices resumed decline, joining other commodities in free fall.
Crude oil failed to hold onto yesterday’s gains, sinking more than 1 percent during Wednesday’s trading. The West Texas Intermediate grade fell below the $50 per barrel level for the first time since April. Crude accelerated its decline after positive US housing data bolstered the US dollar. Crude oil is the key export commodity of Canada, resulting in a strong correlation between moves of oil prices and the Canadian currency.
Many market experts predict that the loonie will continue to move down versus the greenback as the Federal Reserve gets ready for an interest rate lift-off.
USD/CAD rallied from 1.2942 to 1.3028 as of 19:09 GMT today. EUR/CAD gained from 1.4156 to 1.4211. CAD/JPY declined from 95.64 to 95.20.
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