Canada’s dollar dropped for a
fourth straight day in the longest losing streak since December as crude oil
tumbled below $100 a barrel.
The loonie, as the currency is nicknamed,
slid against the yen and pound as a decrease in U.S. demand for gasoline added
to signs of slowing growth for Canada’s biggest trading partner. Commodities
dropped the most in almost two years on speculation global economic growth will
slow. Raw materials including crude oil account for about half of Canada’s
“Almost all of the move is coming from the
commodity market,” said Camilla Sutton, chief currency strategist at the capital markets unit of Bank of
Nova Scotia in Toronto. “Commodity markets are small markets, and when you have
a lot of investors moving toward one small market, it tends to push prices up
beyond their natural, or valuation, level.”
The loonie depreciated 1.1 percent to 96.96
cents versus the greenback at 3:15 p.m. in Toronto, from 95.94 cents yesterday,
after declining as much as 1.2 percent to 97.08 cents, the weakest level since
April 18. One Canadian dollar buys $1.0304. The Canadian currency touched 94.46
cents on April 29, the strongest since November 2007.
Futures on crude oil, Canada’s biggest
export, fell as much as 11 percent to $98.25 a barrel before trading at $98.66.
U.S. stockpiles climbed to the highest level since October, and gasoline
consumption slipped to a four-week low, the U.S. Energy Department said