An increase in risk awareness is largely responsible for pushing the Canadian dollar to a two-week low against its US counterpart. With each report of further trouble in Europe, risk aversion becomes a greater concern and this is driving investors to the perceived safety of the US dollar.
Ã¢â‚¬Å“It seems every 10 minutes thereÃ¢â‚¬â„¢s a headline from an official in Europe, saying something relating to sovereign debt issues, Portugal, Ireland in particular,Ã¢â‚¬Â Blake Jespersen, director of foreign exchange at Bank of Montreal, said by phone from Toronto. Ã¢â‚¬Å“The market is just not as bullish as it was a few weeks ago. Ongoing problems in Europe are dragging down the commodity currencies and some of the risk-based assets.Ã¢â‚¬Â
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