Last week's losses against the world's reserve currency were as high as 1.2 percent, which largely were prompted by losses to tradables on the commodity complex. The economy of Canada is based on the export of its abundant natural resources.
"From a monetary-policy perspective, as well as the external environment in Australia, Canada looks in slightly better shape and I do think there's scope for relative Canadian dollar out-performance, albeit more so Australian dollar under-performance," currency strategy head Jeremy Stretch with Canadian Imperial Bank of Commerce in London told Bloomberg on Monday.
Also tugging down the loonie last week was Bank of Canada governor Mark Carney cutting development and growth forecasts. Carney is set to leave the top position with the central bank of Canada to ease into the same slot with the Bank of England this summer.
Benefiting the Canadian dollar on Monday was the price of crude oil futures, which is the top export of Canada, according to Bloomberg.
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