The value of the Canadian dollar fell against the world's reserve currency on Wednesday, dragged down by deepening worries about unease should debt-hobbled Greece leave the 17-nation euro zone, according to published reports.
The Canadian Press reports investors oriented interests toward the world's reserve currency and assets considered more safe and less risky. The central bank of Canada is facing a growing crescendo to increase interest rates due in part to a stronger outlook for the North American economy.
"Decent data has helped risk bounce," states an email from managing director Steve Butler with Bank of Nova Scotia in Toronto to Bloomberg. "Some U.S. dollar longs are getting pushed out as a lot of currencies look extended" when compared against the U.S. dollar.
Manufacturing sales in Canada exceeded median forecasts and a healthier number of housing starts in the U.S. helped drive a brighter outlook for economic growth in the continent.
But the ongoing political struggle in Greece continues weighing heavy on the monetary unit. The Canadian Press reports that since neither the May 6 election in the Aegean nation nor nine days of discussion among the nation's political elite delivered a leader, another election is scheduled for June 17.
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