Monday saw the Canadian dollar lose value against the world's reserve currency as concerns for the sovereign debt crisis and Spain grew more profound, Bloomberg reports.
For the first time, Spanish bond yields gained to 7.5 percent. Losses to crude oil futures also drew down the loonie as the energy commodity is the top export of Canada, whose economy is based on the shipment of its natural resources. Canadian 10-year bonds dropped to record lows, pushing investors to government assets' safe haven.
"Euro/CAD still looks attractive to sell because the problems in the euro zone are much more deep-seated and structural and symptomatic about broader uncertainties within the whole … single currency area," currency strategy head Jeremy Stretch with CIBC in London told Reuters.
Though the loonie lost value against the U.S. dollar, the monetary unit drove to all-time highs against the common currency of the European Union.
Spain is likely to be forced to pursue bailout aid to rescue it from its severe fiscal issues, Reuters reports. Euro zone finance ministers this past Friday granted approval for aid to Spain's banks.
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