The loonie fell against both the US dollar and the single European currency as the commodities dropped rapidly today.
The CAD slid below the parity rate with its US counterpart for the first time since January 4. It also fell for the 3rd consecutive day against the euro. On the other hand, the currency managed to rise against the Japanese yen today.
The Forex traders reacted to the falling crude oil prices, while the dovish expectations for the Canadian interest rates continued to press on the currency. Oil (Brent), which is a major part of the Canada’s exports, fell from $97.79 to $96.34 on the spot market today.
Traders are betting that China will have to cool its growth down this year, reducing the consumption of the commodities. Such speculations tend to hurt the commodity currencies, of which the Canadian dollar is one of the most prominent species. Some experts also point out the recent Bank of Canada interest rate statement that sounded rather dovish.
USD/CAD rose from 0.9955 to 0.9996 as of 17:03 GMT, while the high was set at 1.0030 today. EUR/CAD went up from 1.3397 to 1.3448; CAD/JPY grew from 82.43 to 82.99.
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