The Canadian Dollar traded at almost a four-month low against its U.S. counterpart as the price of crude oil, the nation’s biggest export, fluctuated.
Futures of crude oil fell 0.6 percent to $93.56 per barrel in New York after gaining as much as 0.6 percent. The commodity fell 0.8 percent yesterday after Iran and world powers reached an interim deal to set limits on its nuclear program. The Canadian dollar has dropped 5.7 percent this year against the greenback as the Bank of Canada Governor Stephen Poloz signaled he might need to cut interest rates to boost the economy, while the U.S. Federal Reserve plans to reduce its pace of bond buying.
“You’ll see the loonie react to news of the day, but the loonie is on its down trend,” David Doyle, a strategist at Macquarie Capital Markets, said by phone from Toronto. “That’s simply because the U.S. economy should outperform the Canadian economy over the next year or so.”
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.