The Canadian dollar weakened against the greenback on Monday, giving up early gains as it got caught in a flight from riskier assets sparked by the continuing investor retreat from emerging markets.
A combination of country-specific problems and expectations that the U.S. Federal Reserve will scale back its economic stimulus program kept pressure on emerging markets in a selloff that started last week.
The emerging-market concerns also weighed on equities and oil prices, while supporting the U.S. dollar. The search for safer assets had earlier boosted the loonie’s appeal, but that did not last through the session.
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