Wednesday saw the Canadian dollar slide against the world's reserve currency as concerns about U.S. political leaders dilly-dallying in the face of the looming deadline of the fiscal cliff, Reuters reports.
As the loonie marks three-straight days of losses to the U.S. dollar, the remarks of Senate Majority Leader Harry Reid about minimal progress on fiscal cliff issues are of note. The loonie is sensitive to financial and economic developments in the U.S. as the two nations share a strong commerce, trade and business relationship.
Losses to the loonie come after one week of a solid performance for the commodity-linked monetary unit.
The Wall Street Journal reports the loonie also suffered losses as a result of skepticism growing for the deal crafted Monday night by euro zone finance ministers. For the third time in three weeks, the leaders convened to preserve the integrity of Greece, a two-time international bailout recipient as a consequence of the sovereign debt crisis.
The leaders on Monday were able to craft a deal that is falling under question as a viable solution to the debt scourge.
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