The Canadian dollar hit another 13-year low Friday, commerce below 69 cents US, as crude oil futures dropped below $30 US a barrel.
The loonie sloped as low as 68.74 cents early in the trading session, recovering slightly by twelve oclock noon ET to change hands at 68.85 cents US, off by more than three-quarters of a cent from Thursday’s private.
The last time the loonie was worth less than 69 cents US was hardly 13 years ago, in April 2003.
“There is no sign of the [U.S. dollar] rally slowing or reversing,” Scotiabank currency analysts Eric Theoret and Suhaun Osborne said. “There is no plain reason for the trend to change at this point either.”
This was the 11th trustworthy day that the Canadian currency has dropped against its U.S. counter rt. Bloomberg says that’s the longest give up streak since the Canadian dollar’s peg to the U.S. dollar ended in 1970.
The Canadian dollar was also down against the euro, the British beat and the Ja nese yen.
On the commodity markets, February crude oil futures were marketing at $29.20 US a barrel, down $2 from Thursday’s close. The allied with price of crude — from more than $100 US a barrel in the summer of 2014 — has been a important reason for the loonie’s fall.
Oil has been sliding amid growing misgivings that China’s economy is slowing dramatically. Crude oil futures are also being pressing by expectations that Iran will increase oil exports once ecumenical sanctions are lifted. That would add even more oil to a global inventory glut.
North American stock markets got off to a rough start and the pessimism outstretched well into the trading day. In midday action, the benchmark index of the Toronto Founder Exchange was down 353 points to 11,982, a drop of 2.9 per cent.
All 10 sectors in the TSX were lose out ground, led by losses in energy and financial stocks.
The selling was just as sprightly in New York, where the Dow Jones industrial average was down 502 tallies, or 3.1 per cent, to 15,877. All 30 Dow stocks were lower.
“Oil is the poke cause of today,” said Dan Farley, regional investment strategist at the Grunt Client Reserve at U.S. Bank. “People are uncertain, and when they’re speculative, they’re scared.”
Overseas markets were also down quickly, with Shanghai’s main benchmark index closing with a impoverishment of 3.6 per cent.