By Commodity News Service Canada
Winnipeg, January 2 – The Canadian dollar was sharply weaker relative to the US dollar on Friday, losing more than a full cent and hitting a fresh six-year low during the session.
Ongoing weakness in the crude oil market, as it was down sharply, holding just above the US$52 per barrel level, was behind much of the decline, analysts said. The lower oil prices will likely hurt Canada’s economy, as oil is one of its biggest exports.
At 11:37 CST Friday, the Canadian dollar was trading at US$0.8515 or US$1=C$1.1744, which compares with Wednesday’s North American close of US$0.8620 or US$1=C$1.1607. Markets were closed on Thursday for New Year’s Day.
Strength in the US dollar index, weak gold prices and ongoing expectations that the US will raise interest rates before Canada does, added to the bearish tone.
The Toronto Stock Exchange was up 71.20 points, or 0.49%, at 11:37 CST Friday, to sit at 14,703.64.
