The Canadian dollar traded close to a six-month low versus its U.S. counterpart as signs of slower economic growth weighed on demand.
Canada’s dollar remained lower after Toronto-Dominion Bank, Bank of Nova Scotia and four other Canadian lenders had credit ratings cut by Moody’s Investors Service because of high consumer debt and elevated house prices. The currency pared losses earlier today as commodity price strengthened, including crude oil, the nation’s largest export.
“The downgrade is a near-term catalyst for Canadian dollar weakness,” Adam Button, a currency analyst at Forexlive.com, said in a telephone interview from Montreal. “This will only add to negative Canadian dollar sentiment.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.