The Canadian dollar dropped for the first time in four days versus its U.S. counterpart as prices on crude oil, the country’s largest export, fell the most in a week along with other commodities.
The currency fell against the majority of its most traded peers as futures on crude oil dropped as much as 1.3 percent to $94.50 per barrel in New York before a report forecast to show stockpiles increased last week in the U.S., the largest customer of Canadian oil. Crude inventories probably rose by 550,000 barrels to 391.8 million last week, and U.S. gasoline supplies by 500,000 barrels to 219.3 million, according to a Bloomberg News survey before the report tomorrow from the Energy Information Administration.
“The Canadian dollar remains a high-beta currency, and fluctuations in the oil price will always affect it more,” said Eimear Daly, a currency market analyst at Monex Europe Ltd., by phone from London.
The loonie, as the Canadian dollar is known, fell 0.5 percent to C$1.0248 per U.S. dollar at 8:19 a.m. in Toronto. One loonie buys 97.58 U.S. cents.
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