Loonie feels pinch of global economic crunch

The monetary unit of Canada sank toward its lowest value in 14 weeks against its southerly rival on Thursday but climbed to its two-week high against the shared currency of the European Union, Reuters reports.

Currencies and assets considered more risky were not too high of a priority for investors who were more preoccupied with the global growth outlook. Two nations, South Korea and Brazil, slashed interest rates but Japan's central bank opted against the practice. Australia saw June jobs data surprisingly drop, augmenting concerns about the world economy.

"The  employment data in Australia which hit the Aussie ... dragged all the other commodity currencies with it," global head of FX strategy Adam Cole with RBC Capital Markets in London told Reuters.

Also pulling down the loonie on Thursday was the unlikely prospect of the U.S. Federal Reserve deploying any monetary easing strategies any time soon as indicated by the release of June meeting minutes on Wednesday. No near-term action is likely, the minutes stated.

Anticipations about the reduced demand for oil, Canada's top natural resource, also weighed heavily on the loonie, according to The Canadian Press.