CANADA: After a break on New Year’s Day, the Canadian dollar resumed trading down almost a cent from where it ended 2014, and was trading hands at just over 85 cents US.
The sell-off appeared to be largely driven by strength in the U.S. dollar, as opposed to weakness in Canada’s currency.
Virtually all of the world`s major currencies have been losing ground when compared to the U.S. dollar of late, because the greenback is perceived to be a safe haven that people flock to during times of uncertainty.
The euro on Friday fell to its lowest level since 2010, down 0.7 %to $1.2007 US. Indeed, the U.S. dollar was higher Friday against all 16 of the world’s biggest currencies, which doesn’t include the loonie.
But a big part of the loonie’s recent weakness is related to the continuing slide in oil.
“Oil prices are flirting with their lows and remain an important weight on [the Canadian dollar],” Scotiabank said in a note to clients Friday.
The price of a barrel of North American oil flirted with the $52-a-barrel mark before recovering later in the day.
