BLBG: Canadian Currency Trades Near Two-Week Low as Equities Decline
By Chris Fournier
Dec. 9 (Bloomberg) -- Canada’s dollar traded near the lowest level in almost two weeks as U.S. stocks fell and crude oil pared earlier gains, dimming the appeal of currencies tied to growth.
The Canadian currency traded at C$1.0616 per U.S. dollar, up 0.2 percent, at 10:07 a.m. in Toronto, from C$1.0638 yesterday, when it touched C$1.0671, the weakest level since Nov. 27. One Canadian dollar buys 94.20 U.S. cents.
Raw materials generate more than half of Canada’s export revenue, and crude oil is the nation’s biggest export.
U.S. stocks declined after Standard & Poor’s cut the credit-rating outlook for Spain, spurring speculation that defaults will spread across the globe. Equities plunged yesterday after Fitch Ratings cut Greece’s credit and a Dubai developer reported a $3.65 billion loss.
The S&P 500, a benchmark of U.S. stocks, slipped 0.2 percent today to 1,089.88.
Crude oil for January delivery rose 0.5 percent to $72.96 a barrel on the New York Mercantile Exchange, after earlier gaining as much as 1.7 percent.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
