Loonie loses value against greenback as crude oil slips

Posted On: June 18, 2012
The value of the monetary unit of Canada fell against its southerly rival on Monday, pulled down by economic data indicating that the country is seeing a slowdown in growth, according to Bloomberg.

The Canadian dollar also tracked the downward drive of crude oil, the nation's top commodity export. Canada's economy is largely based on the shipping of its natural resources and oil is the lead export. But, despite losses against the U.S. dollar, the loonie increased against the shared currency of the European Union.

"There's more and more pressure on the Fed to do something proactive," chief strategist Dean Popplewell with online currency-trading firm Oanda Corp told Bloomberg. "If we don't have that, then the market will start unwinding whatever risk is actually left out there."

Boosting the loonie against the euro was the prospect of additional intervention ordered by the U.S. Federal Reserve as the body's policy-making arm prepares for two days of meetings beginning on Tuesday.

The Canadian Press reports Monday's poor performance across the commodity complex also dragged down the value of the loonie.

Category: Industry News

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