Bloomberg News

Canada’s Dollar Declines for Third Day, Touches Five-Week Low

November 16, 2011

Nov. 16 (Bloomberg) -- Canada’s dollar slid for a third day versus its U.S. counterpart and fell against a majority of its most-traded peers as Europe’s sovereign-debt crisis sapped demand for higher-yielding assets.

The Canadian currency touched the lowest level in five weeks after European Commission President Jose Barroso said the region is facing a “truly systemic” crisis. Futures on crude oil, Canada’s biggest export, dropped.

“Everything is still trading off of the heels of what’s playing out in Europe,” said C.J. Gavsie, managing director for currency trading at Bank of Montreal, by phone from Toronto. Rising European bond yields are “still the talk of the marketplace. It’s more market sentiment than technical drivers at this point.”

Canada’s currency dropped 0.4 percent to C$1.0252 per U.S. dollar at 8:03 a.m. in Toronto. It touched C$1.0288, the weakest level since Oct. 12. One Canadian dollar buys 97.54 U.S. cents.

Futures on the Standard & Poor’s 500 Index expiring next month dropped 0.7 percent. Futures on crude oil decreased 0.3 percent to $99.07 a barrel.

--Editors: Dennis Fitzgerald, Kenneth Pringle

To contact the reporter on this story: Chris Fournier in Halifax, Nova Scotia, at cfournier3@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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