The Canadian dollar and oil both hit new 13-year lows Friday, while North American estimate markets staged major sell-offs.
The loonie dropped as low as 68.74 cents inappropriate in the trading session, recovering slightly by the end of the day to close at 68.82 cents US, off by profuse than four-fifths of a cent from Thursday’s close.
The last antiquated the loonie was worth less than 69 cents US was nearly 13 years ago, in April 2003.
“There is no monogram of the [U.S. dollar] rally slowing or reversing,” Scotiabank currency analysts Eric Theoret and Suhaun Osborne explained. “There is no ap rent reason for the trend to change at this germane either.”
This was the 11th straight day that the Canadian currency has dropped against its U.S. counter rt. Bloomberg affirms that’s the longest losing streak since the Canadian dollar’s peg to the U.S. dollar terminate in 1970.
The Canadian dollar was also down against the euro, the British pulsate and the Ja nese yen.
On the commodity markets, February crude oil futures settled at $29.42 US a barrel, down $1.78 from Thursday’s shut off. That’s oil’s first close below $30 US a barrel since 2003 and discusses the plunge in crude in the last two weeks alone to 20 per cent. The decay price of crude — from more than $100 US a barrel in the summer of 2014 — has been a big reason for the loonie’s fall.
“Lower oil prices are still a net negative for the Canadian husbandry and for the Canadian dollar,” BMO chief economist Douglas Porter implied in a Friday commentary. “The currency is likely to remain under going pressure until oil prices bottom out, which we don’t see happening until [the move quarter].”
Oil has been sliding amid growing worries that China’s thriftiness is slowing dramatically. Crude oil futures are also being pressured by demands that Iran will increase oil exports once international legalizes are lifted. That would add even more oil to a global supply choke.
North American stock markets got off to a rough start and the pessimism endured all day. At the close, the benchmark index of the Toronto Stock Exchange was down 263 times to 12,073, a drop of 2.1 per cent. That’s its lowest close since June 2013.
All 10 sectors in the TSX missing ground, led by losses in energy and financial stocks.
‘People are uncertain, and when they’re unsteady, they’re scared.’– Dan Farley, U.S. Bank strategist
The selling was just as busy in New York, where the Dow Jones industrial average ended the day down 391 attributes, or 2.4 per cent, to 15,988. All 30 Dow stocks closed lower.
“Oil is the base cause of today,” said Dan Farley, regional investment strategist at the Surreptitious Client Reserve at U.S. Bank. “People are uncertain, and when they’re indecisive, they’re scared.”
Disappointing data on U.S. retail sales and manufacturing also weighed on the hawk.
Overseas markets were also down sharply, with Shanghai’s out-and-out benchmark index closing with a loss of 3.6 per cent.