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Loonie Drubbed on rising Greenback
The Canadian dollar tumbled more than US1¢ yesterday, its biggest loss against the greenback in seven weeks and its fourth straight loss since Jim Flaherty, the Minister of Finance, said steps could be taken to dampen the currency`s rapid rise.
But while the market has turned cautious on the Canadian dollar following the comments, the decline is largely a result of lower oil prices, combined with a rise in demand for U. S. dollars because of more bullish sentiment about recovery prospects.
Marc Chandler, a senior currency strategist at Brown Brothers Harriman, said the top three performing currencies in July -- the Canadian dollar, Swedish krona and Norwegian krona -- were now the worst performers in August as traders readjusted their positions.
"We recommended long Canadian dollar positions in July, but turned cautious early last week just before Finance Minister Flaherty repeated concern about the loonie`s strength," he said.
The Canadian dollar fell US1.06¢ to US90.79¢ yesterday. It has lost 3% against the U. S. dollar since hitting a high of US93.82¢ at the start of the month and has depreciated for the past four sessions.
Read the full article here.
The Canadian dollar tumbled more than US1¢ yesterday, its biggest loss against the greenback in seven weeks and its fourth straight loss since Jim Flaherty, the Minister of Finance, said steps could be taken to dampen the currency`s rapid rise.
But while the market has turned cautious on the Canadian dollar following the comments, the decline is largely a result of lower oil prices, combined with a rise in demand for U. S. dollars because of more bullish sentiment about recovery prospects.
Marc Chandler, a senior currency strategist at Brown Brothers Harriman, said the top three performing currencies in July -- the Canadian dollar, Swedish krona and Norwegian krona -- were now the worst performers in August as traders readjusted their positions.
"We recommended long Canadian dollar positions in July, but turned cautious early last week just before Finance Minister Flaherty repeated concern about the loonie`s strength," he said.
The Canadian dollar fell US1.06¢ to US90.79¢ yesterday. It has lost 3% against the U. S. dollar since hitting a high of US93.82¢ at the start of the month and has depreciated for the past four sessions.
Read the full article here.