Loonie slumps three-straight days

Posted On: November 28, 2012
The monetary unit of Canada edged down in value against the U.S. dollar on Wednesday, tugged by growing preoccupations about U.S. political leaders' inability to successfully negotiate the looming fiscal cliff, according to Reuters.

The Canadian dollar has now lost value against its southerly rival for three consecutive trading sessions one week after a performing strongly. Canada and the U.S. share a strong trade and commerce relationship thus the loonie is sensitive to economic and financial developments south of its border.

"Canada still seems an OK story but there's uncertainty around the U.S. 'fiscal cliff' (and there is) still uncertainty around some of the big M&A deals, the Nexen and Progress deals," executive director of foreign exchange sales Shane Enright with CIBC World Markets told the news source.

The Wall Street Journal reports the monetary unit suffered in the aftermath of remarks by Harry Reid, majority leader of the senate, who noted that leaders have achieved minimal advancement regarding the year-end deadline to prevent tax rises and spending cuts.

Doubts about the pact that euro zone finance ministers finalized on Monday evening also are drawing down the loonie, The Wall Street Journal reports.

Category: Industry News

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