Loonie slumps for fourth day against greenback

Posted On: January 28, 2013

The monetary unit of Canada dropped against the world's reserve currency on Monday, tugged down by concerns about the reduced pace of economic growth, according to Bloomberg.

The Canadian dollar marked four consecutive trading sessions of losses, which is the monetary unit's longest bearish trend in about three months. During that downward dive, the Bank of Canada reduced its growth estimates. The loonie marked five consecutive trading sessions of losses in late October of last year.

"The market is still looking at the softer tone from the Bank of Canada last week," currency executive director Shane Enright with the Canadian Imperial Bank of Commerce in Toronto told the news source on Monday. "You're seeing rotation out of growth currencies in general."

The central bank of Canada plans to conduct a sale of notes set for maturity in 2023 on Wednesday. The bank plans to offer a 1.5 percent coupon and the target amount is $2.87 billion.

The Wall Street Journal reports the loonie's performance against the dollar has struggled since the central bank of Canada kept its key policy rate at 1 percent.

Category: Industry News

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