The Canadian dollar was falling against its major rivals today, even against the US dollar, which itself was vulnerable. The loonie extended losses after the release of poor macroeconomic data in Canada.
Foreign investment in Canadian securities was at C$4.0 billion in October, down from C$7.8 billion in September. Analysts had predicted a far higher value of C$6.2 billion. At the same time, Canadian investment in foreign securities increased to C$14.9 billion, reaching the highest level since the beginning of the year. This resulted in a net outflow of funds of C$11.0 billion from the Canadian economy in October.
Crude oil, Canada’s major export commodity, gained today, but was unable to support the Canadian currency. Crude gained following the report that US drillers decreased the number of oil rigs, but the rally was not nearly big enough to erase Friday’s huge losses.
USD/CAD edged up from 1.3384 to 1.3398 as of 14:24 GMT today. EUR/CAD climbed from 1.5126 to 1.5193. CAD/JPY went down from 84.66 to 84.39.
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Canadian Dollar Falls, Declining Foreign Securities Purchases Weigh
