Commonly referred to as the loonie because of the $1 coin holds an image of the aquatic bird, the Canadian dollar – when held against the U.S. dollar – touched values not seen in seven weeks. It also has been gradually sinking when compared to other currencies with which it typically trades.
"Certainly continued weakness in commodities and a U.S. dollar bid amid renewed risk aversion are leading to" the slip in price of the Canadian dollar, Matt Perrier, director of currency sales at Bank of Montreal's BMO Capital Markets unit in Toronto, told the news service.
Pegged at approximately 97.57 cents to the U.S. dollar at 10 a.m. on Tuesday, the Canadian dollar has not seen levels this soft since late March. But the day before, the loonie was priced at 97.58 cents. One loonie purchases $1.0249 in U.S. currency.
At 11:52 a.m. on Tuesday, Brent crude oil futures slipped 2.11 percent, a $2.34 drop to $108.50 per barrel.
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