The monetary unit of Canada dropped in value against its major rivals on Tuesday after the governor of the central bank said he might be poised to cut down his economic outlook for the nation he serves, according to Bloomberg.
Bank of Canada Governor Mark Carney also indicated he might be inclined to delay boosting interest rates, prompting the Canadian dollar to fall for a third consecutive trading session. Political tumult also is impacting the value of the monetary unit as the premier of the province of Ontario announced his resignation on Monday because of cancellation of power plants.
"Clearly the market is still reacting to the comments from (Bank of Canada Governor) Carney yesterday, that's continuing to weigh on the Canadian dollar," foreign exchange strategy head Jeremy Stretch with CIBC World Markets in London told Reuters.
The loonie scraped its lowest value in one week against the world's reserve currency, Reuters reports.
The Canadian dollar sank to its lowest price since October 4 but the drop was tempered by indications about equities in North America opening higher.