Canada’s dollar fell versus most major counterparts as futures of crude oil, the nation’s largest export, touched the lowest level in more than five months.
The currency dropped from yesterday’s one-week high versus the U.S. dollar before a report on Nov. 22 that’s forecast to show Canadian inflation fell in October. The Organization for Economic Cooperation and Development cut its global growth forecasts for this year and next. The discount Canadian oil producers face versus U.S. benchmark prices widened.
“Oil isn’t doing the Canadian dollar any favor,” said Adam Button, a currency analyst at forexlive.com, by phone from Montreal. “Canada will continue to sell oil at a big discount. It’ll pose a considerable headwind for the Canadian dollar.”