Canadian dollar drops as euro debt concerns grow

Posted On: July 23, 2012
The value of the monetary unit of Canada dropped against its southerly rival on Monday amid conjecture that the sovereign debt crisis is growing more grave, according to Bloomberg.

Yields on bonds in Spain pushed to 7.5 percent, marking the first time that return has pushed as high. The Canadian dollar also dropped as crude oil prices also fell as the energy commodity is the top export of the natural-resources-rich nation. Ten-year Canadian bonds fell to record lows while investors drove toward government assets and the haven they offer.

"The pressure on Spain remains immense," managing director of foreign exchange Boris Schlossberg with BK Asset Management in New York told the news source. "If you're a longer-term trader, you remain short."

Despite losses against the world's reserve currency, the Canadian dollar achieved record highs against the shared currency of the European Union.

Reuters reports the yields on Spanish bonds drove to their highest ever amid concerns that Spain will be compelled to pursue a bailout for its debt hobbled fiscal issues. Just this past Friday finance ministers approved terms for the nation to strengthen its banks.

Category: Industry News

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