The Canadian dollar touched its lowest in more than five years as prices for crude oil dropped to levels that may endanger development of the nation’s largest export, and curb business investment.
The currency fell against most of its major peers as dimming prospects for global demand and surging oil supply pushed the price for the international benchmark of crude oil below $85 a barrel, the least in four years. That is below one estimated level needed to make some oil sands projects profitable, according to figures cited in a report yesterday from the International Energy Agency.
“It’s all tied into the meltdown we’re having in crude at the moment,” Bipan Rai, director of foreign-exchange strategy at CIBC World Markets Inc., said by phone from Toronto. “Being a commodity currency, being one of the major exporters of crude globally, our domestic currency is tied to that.”
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