The monetary unit of Canada sank to its seven-day trough on Wednesday against the world's reserve currency as concerns spread about budget negotiations in its top partner for trade and commerce, according to Bloomberg.
Investors and analysts were leery of assets considered more risky amid preoccupations about a federal government shutdown in the U.S. The loonie has lost value against the greenback for two consecutive trading sessions amid political discourse in the globe's largest economy.
"The news out of the U.S. political situation is again ramping up and causing some nervousness, and I don't think people necessarily know how to assess all that's going on in the United States," chief economist David Watt with the Canadian unit of HSBC Holdings Plc. told Bloomberg on Wednesday. "That's keeping markets pretty close to home. No one really wants to get caught off guard."
The loonie edged down 0.1 percent on Wednesday and scraped its lowest value since last Tuesday.
The Canadian Press reports losses were curbed by climbs for crude oil, which is the top export of the natural resources-rich nation.
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