Loonie Closes Lower as Commodities Decline
The Canadian dollar fell today as commodities declined on talks that riskier assets have gained too much in the previous days. Such speculations reduced the appeal of currencies tied to performance of raw materials.
US durable goods orders grew 3.3 percent in April, adding to evidences of economic growth in the United States and fueling speculations that the Federal Reserve will reduce stimulus. Such talks boosted the US dollar.
Stronger greenback led to the drop of commodity prices. The Standard & Poor’s GSCI Index of 24 raw materials dropped 0.1 percent today, while the weekly decline was at 1.2 percent. Futures for crude oil (the major Canadian export) lost 0.4 percent to $93.87 per barrel in New York.
USD/CAD GMT was up from 1.0301 to the closing price of 1.0319, while its daily high was at 1.0354. EUR/CAD closed at 1.3348 after jumping from 1.3324 to 1.3436 (the highest level since April 19) intraday. CAD/JPY went down from 98.94 to 97.92.
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Earlier News About the Canadian Dollar:
- Canadian Dollar Teeters Between Gains and Losses (2013-05-23)
- Loonie Falls as Oil Drops and Fed Considers Reduced Easing (2013-05-21)
- Canadian Dollar Slumps as Inflation Decelerates (2013-05-17)
- Canadian Dollar Drops on Speculations About End of Fed's QE (2013-05-16)
- CAD Gains vs. USD & EUR on Economic Data, Flat vs. JPY (2013-05-15)