Canadaâ€™s dollar weakened below parity with its U.S. counterpart for the first time since August as investorsâ€™ risk appetite declined.
The currency fell for a fifth day as U.S. equity trading was canceled with Hurricane Sandy barreling toward the East Coast. Moodyâ€™s Investors Service warned Oct. 26 it may cut the ratings of six Canadian-based lenders.
â€œThe Canadian dollar is the marquee currency today, breaking parity,â€ Adam Button, an analyst at forexlive.com in Montreal, said in a phone interview. â€œWeâ€™re continuing to see a fairly strong risk-off tone, while many market participants were expecting an extremely quiet session because of the closures in New York. Canadian banks were put on review for a downgrade, and the market didnâ€™t get to respond last week, and it is today.â€
The loonie, as the currency is known for the image of the aquatic bird on the C$1 coin, weakened 0.4 percent to C$1.0010 per U.S. dollar at 5 p.m. in Toronto. It hasnâ€™t lost for five consecutive days since May. The Canadian dollar last closed weaker than parity on Aug. 6. One Canadian dollar buys $0.9990.
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