Canada Dollar Extends Record Slide Before Central Bank Decisionby
Market assigns a 58 percent chance of a rate cut Wednesday
Currency falls for 14th straight day, in longest streak
The Canadian dollar extended a record losing streak, falling to a 13-year low as sinking crude prices fueled speculation the Bank of Canada will reduce interest rates to bolster the economy.
The currency dropped against most major peers as investors soured on assets they perceived as risky, while oil, one of Canada’s major exports, tumbled along with the outlook for growth worldwide. Before the Bank of Canada’s announcement on rates at 10 a.m. in Ottawa, derivatives traders assigned a 58 percent chance policy makers will cut the benchmark from 0.5 percent, according to data compiled by Bloomberg.
"There’s an inordinate amount of concern in the global markets about the health of the global economy again," Shaun Osborne, chief foreign-exchange strategist for Bank of Nova Scotia, said from Toronto. "The line of least resistance for the Canadian dollar is lower.”
The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, weakened as much as 0.8 percent to C$1.4690 per U.S. dollar, the cheapest since April 2003. It trimmed the loss to 0.4 percent to trade at C$1.4643 per U.S. dollar at 9:12 a.m. in Toronto. One loonie buys about 68.29 U.S. cents.
Wednesday marks the loonie’s 14th straight daily decline, the longest losing streak since the country ended its currency’s peg to the greenback and let it trade freely in 1971.