By Commodity News Service Canada
Winnipeg, Dec 10 – The Canadian dollar was down sharply relative to the US dollar on Wednesday, falling along with the tumbling crude oil market, analysts said.
At 11:42 CST Wednesday, the Canadian dollar was trading at US$0.8702 or US$1=C$1.1492, which compares with Tuesday’s North American close of US$0.8741 or US$1=C$1.1440.
A review from the Bank of Canada was also weighing on the loonie, as it highlighted that rising household debt is curbing economic growth in Canada.
Other things harming Canada include slow economic growth in China and Europe, and declining housing prices across the country, the review said.
Declining gold prices and ongoing expectations that US interest rates will rise before Canadian rates were also overhanging the Canadian dollar.
The Toronto Stock Exchange was down 308.78 points, or 2.18%, at 11:42 CST Wednesday, to sit at 13,886.95.
