Loonie dips to lowest point in more than a decade
The Bank of Canada’s decision last week to lower its benchmark interest rate picked up the pace of the loonie’s decline.
A new poll has found that Canadians this year are increasingly choosing to take domestic vacations thanks to plunging Canadian dollar, which yesterday closed at 76.70, or the lowest level since 2004.
“It’s hard to find a positive catalyst to get things back to 80 (cents) or above”.
The Canadian dollar firmed against its USA counterpart on Tuesday as USA dollar buyers took a breather and gold and oil prices stabilized, but an analyst said the outlook remained grim for Canada’s commodity-linked currency.
Until a balance is reached, the expectations of traders who see an extended oversupply in the market will likely continue to prove correct, Watson suggested.
“There’s no query the short-term provide bears are profitable the argument in the intervening time and doubtless will proceed to win that argument for the remainder of this yr and into subsequent yr”, he stated.
The September contract for crude oil was up 23 cents at US$48.68, while the August natural gas contract was down 2.8 cents at 2.788. S&P 500 e-mini futures ESc1 were down 0.41 percent and Nasdaq 100 e-mini futures NQc1 were down 1.16 percent. [.N]. Its sales dropped 4.3 per cent during the session.
Yahoo also delivered a loss of nearly $22 million for the quarter and its shares fell 1.2 per cent.