Canadian dollar drops as euro zone leaders get to work in Brussels

The monetary unit of Canada dropped for a second consecutive day on Thursday against its southerly rival, Bloomberg reports.

The Canadian dollar, akin to other currencies linked with nations whose economies are based on commodities, dropped as concerns strengthened about the sovereign debt crisis dragging down world economic development and growth. Additional drops in value for the loonie are likely amid concerns for slackening raw materials persuading the Bank of Canada from boosting borrowing costs.

"It's risk off, plain and simple," states an email authored by chief currency strategist Shaun Osborne with the TD Securities unit of Toronto-Dominion Bank, according to Bloomberg. "We've seen steady selling pressure in the C$1.03 area. But this interest will get overwhelmed by more risk aversion. My feeling is that we retest the C$1.0450 area at least in the next four to six weeks."

Thus far this month, the Canadian dollar has lost 0.8 percent of its value against the U.S. dollar, which represents the biggest dive since losing 1.3 percent in August of last year.

The two-day summit in Brussels kicked off Thursday with finance officials working on devising short-term strategies for the stability of Spain and Italy, according to Reuters.