The value of the Canadian dollar fell to its lowest level in seven days to its southerly rival on Thursday, according to Bloomberg.
The loonie's losses were driven by crude oil futures dropping in value as the energy commodity is the nation's top export in the natural-resources-rich country. Roughly half of the nation's exports come from raw materials. Yields on bonds in France, Spain and Italy exhibited reason for concern about the persistent sovereign debt crisis and the damage it causes.
"The main trade continues to be sell euro-dollar, and people are looking for themes to do it," senior foreign-exchange strategist Sebastien Galy with Societe Generale told Bloomberg, a reference to Spain's local government financing.
At 2:37 p.m. on Thursday, crude oil futures dropped 1.08 percent, a $1.23 drop to $112.47 per barrel.
The Canadian Press reports the loonie also lost value due to investors staying away from risky investments as the sovereign debt crisis continued demonstrating its ability to cause damage to banks in Europe. The nation is preparing for Friday's release of a jobs report for this past December.
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