Monday saw the Canadian dollar notch a fourth consecutive trading session of losses against the world’s reserve currency as worries grew about slowing development and growth, Bloomberg reports.
The string of losses thus far is one short of the loonie‘s longest bearish trend in about 90 days. Late last week the central bank of Canada slashed estimates for growth, which played a roll in the poor performance of the monetary unit.
“I think the market was pretty long of Canadian dollars in general and we’re trading through levels that continue to see positions get cut,” foreign exchange director Matthew Perrier with Bank of Montreal in Toronto told the news source on Monday. “With the Bank of Canada meeting last week, it’s just taken a little bit of shine off the currency.”
The Bank of Canada is preparing for a sale of 10-year notes on Wednesday, when it is slated to auction about $2.87 billion and offer a 1.5 percent coupon.
Another factor impacting the performance of the Canadian dollar on forex markets is the Bank of Canada leaving interest rates at 1 percent last week, according to The Wall Street Journal.
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