BLBG: Canada’s Dollar Trades Near Two-Week Low as Crude Oil Declines
Oct. 26 (Bloomberg) -- Canada’s currency traded near the lowest level in more than two weeks as oil and gold dropped, diminishing the appeal of commodity-linked currencies.
The Canadian dollar tumbled last week after Bank of Canada Governor Mark Carney stepped up warnings that its increasing strength is a threat to economic recovery. Carney is due to speak today in Montreal.
“Bank of Canada comments still weigh on the Canadian dollar,” said Firas Askari, head currency trader in Toronto at BMO Capital Markets, a unit of Canada’s fourth-largest lender. Options expiring at 10 a.m. should keep the Canadian dollar pinned to around C$1.05 until then, he said.
The currency weakened 0.4 percent to C$1.0575 per U.S. dollar at 8:19 a.m. in Toronto, from C$1.0538 on Oct. 23. It touched C$1.0631 on Oct. 8. One Canadian dollar buys 94.56 U.S. cents.
Crude oil, Canada’s largest export, fell today and stocks were little changed. The Canadian currency, nicknamed the loonie for the aquatic bird on the one-dollar coin, tends to rise and fall with commodities and stocks.
Crude for December delivery declined 0.3 percent to $80.24 a barrel on the New York Mercantile Exchange. Last week it touched $82 a barrel, the highest level in a year. December gold futures slipped 0.2 percent to $1,054.50 an ounce.
The MSCI World Index, a gauge of equities in 23 developed nations rose 0.1 percent after falling 0.2 percent last week.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
