Canadian Currency Depreciates on the Outlook for Global Growth

(Chris Fournier — Bloomberg)

Canada’s currency weakened as commodities, European stocks and U.S. equity-index futures fell, reflecting concern that global economic growth will slow.

“Risk aversion is dominating trading, whether we look at equities or commodity-based currencies,” said Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto. “We can look at oil prices and all the other commodities declining and that’s adding some weight.”

The Canadian dollar weakened as much as 1 percent to C$1.2436 per U.S. dollar, from C$1.2316 yesterday. It traded at C$1.2388 at 8:07 a.m. in Toronto. One Canadian dollar buys 80.71 U.S. cents.

Political uncertainty is also weighing on Canada’s currency, according to Strauss. Promises by the country’s opposition parties to fight Prime Minister Stephen Harper’s proposed spending cuts may bring down the minority Conservative Party government.