The Canadian dollar lost value against the world's reserve currency on Friday, tugged downward by dimming optimism for the implementation of monetary easing programs by worldwide central banks, Reuters reports.
The loonie dropped in the aftermath of U.S. Federal Reserve Chairman Ben Bernanke telling the Joint Economic Committee on Capitol Hill on Thursday that no intervention is being planned. Earlier on Thursday, China cut interest rates for the first time in four years.
Fitch Ratings slashed the credit rating of Spain by three levels earlier on Thursday as the nation hosting the euro zone's fourth-largest economic system continues struggling with damages caused by the sovereign debt crisis.
"There's still questions hanging over the market as to whether Spain needs and is prepared to ask for external help in recapitalizing the banks and there seems to be no clarity coming out on that and markets are selling risk on the back of it," foreign exchange strategy global head Adam Cole told Reuters.
But stronger than anticipated employment information released by Canada on Friday did not prove to be as beneficial to the loonie, according to The Canadian Press.
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