Canada Dollar Drops to Weakest in 7 Months on Economic Concern
The Canadian dollar weakened to the lowest level in almost seven months against its U.S. counterpart amid concern the world’s 11th-largest economy is slowing.
The currency fell versus a majority of its 16 most-traded peers as crude oil, Canada’s biggest export, fluctuated and an index of raw materials declined. Reports due Feb. 22 will show the nation’s retail sales declined and inflation slowed, according to Bloomberg News surveys of economists.
“Economic pressures are on the rise in Canada, that’s one of the main things pressuring the loonie,” Joe Manimbo, a market analyst at Western Union Business Solutions, a unit of Western Union Co., said by phone from Washington. “There is some data Friday that investors are nervous about which may highlight growing concerns about underlying fundamentals in Canada.”
The loonie, as the currency is nicknamed for the image of the aquatic bird on the C$1 coin, depreciated 0.4 percent to C$1.0149 per U.S. dollar at 8:49 a.m. in Toronto. It touched C$1.0156, the weakest since July 26. One Canadian dollar buys 98.53 U.S. cents.
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