The Canadian dollar, which started the week with an outstanding performance as traders, attracted by yield and driven by optimism, bought the loonie, fell today against several currencies as the crude oil, the main Canadian commodity export, declined.

The loonie fell for the first time in four days as speculations rose today, that the CIT Group Inc., one of the biggest financial conglomerates in the world, may file for bankruptcy, avoiding risky attitudes from traders, that opted for currencies like the euro and yen. The Canadian dollar also lost against its U.S. counterpart, as the price of crude oil declined 0.7 in New York, reaching $61.14 a barrel. The loonie is one of the most commodity-linked currencies available for trade in foreign-exchange markets, due to Canada’s economic dependence on its neighboring United Stated demands for energy.

Even if this week’s trend has been rather positive with a growing risk appetite and confidence among investors, the speculations regarding the CIT Group brought a different tone to markets, splitting opinions and making charts to take divergent trajectories. The fall in the price of crude oil stopped Canada’s dollar to continue its rally, and considering traders were already impacted by the speculations regarding CIT Group, the vast majority of them opted for other purchases in the currency market, like the yen and the euro.

USD/CAD traded at 1.1181 as of 19:25 GMT after bottoming at 1.1119 yesterday. CAD/JPY fell to 83.72 from yesterday’s rate of 84.83.

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