Canadian Dollar Falls with Stocks & Oil Prices

The Canadian dollar fell today after the stocks and the crude oil prices declined, erasing the demand for the growth-related currencies, and as the speculation, that the Bank of Canada would refrain from rising the interest rates further, decreased the appeal of the Canadian currency.

The Standard & Poor’s 500 Index fell 0.6 percent. November delivery for crude oil dropped as much as 1.3 percent to $75.52 per barrel on the New York Mercantile Exchange. The equities and the oil prices are two major driving forces behind the loonie’s moves, and they were unfavorable today for the currency.

Mark Carney, the Governor of the Bank of Canada, voiced the concern about the weakening economy of the US, the biggest Canada’s trading partner. His words made the analysts believe that the central bank expect small depreciation of Canada’s currency in the near future. The Canadian dollar rose 2.5 percent this year, boosted by the global demand for the raw materials, which constitute half of Canada’s revenue.

USD/CAD rose from 1.0241 to 1.0306 today as of 22:17 GMT after it fell to the intraday low of 1.0220. EUR/CAD advanced from 1.3807 to 1.3845, following the decline to the intraday low of 1.3764.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.