Canada’s dollar weakened to the lowest level since July 2009 on concern tumbling oil prices may endanger development of the nation’s largest export and the business investment needed to drive economic growth.
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 grade of crude oil below $85 a barrel, the least in four years. That is below the level needed to make some oil sands projects profitable, according to a report from the International Energy Agency.
“People are beginning to question whether we’re getting into a threshold range where some oil sands production becomes dicey and you might start to see an economic impact,” said Emanuella Enenajor, senior Canada economist at Bank of America Merrill Lynch, by phone from New York. “That’s affecting the currency.”
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