The Canadian dollar edged down in value on Tuesday against the world's reserve currency amid speculation that the top banker in the U.S. will signal policy changes when delivering congressional testimony on Wednesday, according to Bloomberg.
The spoken word of Ben Bernanke with the U.S. Federal Reserve is likely to draw increased amounts of attention from investors and analysts as conjecture mounts that quantitative easing programs to spur the globe's largest economy will taper. The U.S. dollar has been gaining in value in recent days.
The loonie is "really following the flow, which sees the U.S. dollar stronger across the board," foreign exchange managing director Jack Spitz with National Bank of Canada in Toronto told Bloomberg on Tuesday, noting the greenback is advancing amid "the anticipation that QE tapering is in the cards."
Tuesday marks the first day of trade this week in Canada, which on Monday celebrated Victoria Day. Canada and the U.S. share a strong commerce relationship, making the Canadian dollar sensitive to economic and financial developments in the U.S.
The loonie also slipped against most of its major counterpart currencies while its top export, crude oil, struggled on commodity markets, according to Bloomberg.
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