Canada’s Dollar Weakens on Pessimistic Markets

The Canadian dollar touched a new record low for 2010 versus its U.S. counterpart as a massive wave of risk aversion irradiating from Europe caused commodities and equities markets to decline worldwide.

The loonie was once again affected by pessimism in trading markets globally, as Europe’s budget deficit brought risk aversion back to markets with strong influence in the loonie rates, specially those of energetic commodities and stocks in North America. As appetite for riskier assets falls, traders protect their portfolios in refuge investments like assets in the U.S. and Japan, making the loonie to post the biggest falls versus these currencies.

USD/CAD traded at 1.0723 as of 20:56 GMT from a previous rate of 1.0615 yesterday.

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