Loonie briefly dips below 70 cents US for 1st time since 2003

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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.

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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.”

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