The monetary unit of Canada endured a fourth-straight day of losses on Thursday against its southerly rival, tugged down by speculation about the spreading contagion of the sovereign debt crisis in the euro zone should debt-hobbled Greece withdraw from the bloc, according to published reports.
Underwhelming economic data released by the U.S. also was detrimental to the Canadian dollar, Reuters reports. Coupled with concerns about euro zone nations' continued suffering and acquiring the contagion, that economic data is likely to continue applying pressure to the loonie.
"The trend is sell euros, sell the commodity linked currencies, buy dollars, sell risk generally. The Canadian dollar is likely to weaken here," Europe foreign-exchange strategy head Steven Saywell with BNP Paribas told Bloomberg.
Traders' interests were gravitating away from risky assets and toward more safe investments. This week the Canadian dollar neared its lowest value against the U.S. dollar in about four months as a Spanish debt auction saw expenses for borrowing climb on Thursday.
An uptick in car purchases helped drive a wholesale sales increase in Canada in March, marking the second-straight month of gains for the metric.
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