Canadian Dollar Declines on Government Statement

The Canadian dollar declined from the highest level in 2 weeks today as commodities slid on renewed pessimism and a central bank official’s statement suggested that the current strong loonie may jeopardize the national economic growth.

After a negative day for stock markets mainly driven by pessimism towards the North American real estate market, the crude oil, one of the main Canadian exports, weakened, pushing the loonie down from a 10-day high. Bank of Canada officials affirmed today that the current strong levels for the national currency may be a threat for the gross domestic product growth, reflecting immediately on the Canadian currency performance today.

USD/CAD traded at 1.0847 as of 18:43 GMT from an intraday rate of 1.0771.

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