Loonie down almost 2 cents, lowest level since April 2007
The loonie is still on a losing streak — it's down 1.85 cents on fears that Canada will be swept away in possible global recession, and is at its lowest level since April 2007.
The Canadian dollar traded at 87.06 cents US at noon Thursday, from Wednesday's noon fixing of 88.90.
Earlier Thursday, the currency had fallen 2.18 cents before rebounding.
The Canadian dollar was as high as 96.73 during the last week in September. In April 2007, it tumbled to 87.11.
In recent days, however, traders have started to believe that Canada's economy is slowing along with other nations in the Organization for Economic Co-operation and Development, and that oil prices would tank along with these economic prospects.
As investor sentiment has gone south in the past few weeks, so has Canada's currency.
So far this week, the loonie has lost 5.8 per cent to go with a 4.5 per cent currency depreciation in the previous five trading days.
Earlier this week, the International Monetary Fund said the global economy was heading for a distinct slowdown, a factor likely to crimp Canada's export sales into the United States.
In addition, commodity buyers now see crude oil slumping as well in the face of lower consumer and business demand. Oil prices are hanging around $90 US a barrel, 40 per cent below the commodity's June peak.
0 comments:
Post a Comment