Canadian dollar falls below parity with greenback

Posted On: March 22, 2012
The value of the Canadian dollar on Thursday dropped below parity with the U.S. dollar, marking the first time it sunk below that key level since earlier this month, the Canadian Press reports.

The loonie's losses were attributed to drops in prices of commodities and Canada, China and Europe releasing economic reports that were weaker than anticipated. Manufacturing in China and the euro zone caused concerns and investors diverted their interests toward the U.S. dollar.

Crude oil, the top commodity of the natural-resources-rich nation with an economy based on the trade and commerce of its native products, also was sliding in value, according to Bloomberg.

"The European and Chinese manufacturing data is weighing mightily on prices," partner John Kilduff with energy hedge fund Again Capital of New York told Bloomberg regarding the price of oil. "These are significant signs of slowing. The market is keying off of economic signals right now."

Statistics Canada said regular employment insurance benefits were given to an increased amount of people during the month of January, the Canadian Press reports. The figure grew by 12,400 to 561,000, marking an increase of 2.3 percent.

Category: Industry News

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