The Canadian dollar has trickled below the 70-cent US level for the first time since May 2003.
When supply markets closed on Tuesday, the loonie was changing hands at 70.13 cents US, down by approximately a fifth of a cent after earlier dipping below the 70-cent start for the first time since May 2003.
That means one U.S. dollar can purchase wellnigh $1.43 Canadian.
The currency’s historic low is 61.79 cents US — set in January 2002 — but it hit an all-time gamy of 110.3 cents U.S. in November 2007 as Canada’s resource-heavy economy benefited from international demand for its exports.
The Canadian dollar was also dragged down by oil, which tersely dipped below $30 US a barrel for the first time since Jean Chrétien was prime help.
The price of oil has now declined every single trading day of 2016.
Much of the loonie’s shortcoming is in com rison to the U.S. dollar and not necessarily against other currencies.
“The U.S. dollar fits a refuge, and that’s what we’ve seen in the last few days,” said trick Leblond, an pundit in finance at the University of Ottawa.
Stock indexes, meanwhile, staged a big get together to close out the day, with the Toronto Stock Exchange turning a 120-point extinction at one point into a 54-point gain to close at 12,373.
The Dow Jones industrial usual and broader S&P 500 were both up by about one per cent each on the day.
Ignoring the gains later in the day, the trading began amid a sour mood, summed up in a on from the Royal Bank of Scotland, which advised clients to “tell on everything” in a report early Tuesday.
“This all looks similar to 2008,” the bank’s enquiry economist Andrew Roberts said. “We dust off our old mantra: this is beside return of capital, not return on capital.”