Canada's currency began the first day of the final quarter of 2011 by touching its lowest value ever against the U.S. dollar, published reports indicate.
Reuters reports the loonie is being dragged down by Greece's experience with the sovereign debt crisis as the Aegean nation represents the core country of the scourge victimizing banks and financial institutes in the euro zone. The Canadian Press reports inspectors from the European Commission, the
European Central Bank and the International Monetary Fund remain in Greece in order to determine whether the austerity measures the nation has undertaken qualify it for a second bailout.
Adam Cole, global head of FX strategy with RBC Capital Markets in London, told Reuters that Canadian developments are slow and traders are reliant on Standard & Poor's guidance.
Greece will deplete is financial supply in the middle of this month if the nation does not receive the bailout, the nation's second after one was approved in June 2010. Government bonds and the Japanese yen climbed on Monday while global stocks dropped in value as concerns deepened about the circumstances in Greece.
Financial markets and banks in the euro zone are likely to be subject to strong pressures should Greece default.
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