By Commodity News Service Canada
WINNIPEG, Jan. 12 The Canadian dollar was sharply lower relative to the U.S. dollar Monday morning, dropping below the 84 cents US mark.
At 8:51 CST Monday the Canadian dollar was at US$0.8395 or US$=C$1.1912, which compares with Friday’s North American close of US$0.8427 or US$=C$1.1866.
The weakness was linked to the continued drop in crude oil prices, analysts said. The oil market moved lower in reaction to a forecast from investment bank Goldman Sachs suggesting that prices haven’t bottomed yet.
Softness in copper prices, due to slowing demand, was also undermining the Canadian dollar, as was Friday’s disappointing Canadian employment data.
However, strength in gold was limiting the loonie’s downside, brokers added.
There was no significant Canadian economic data released Monday.
The TSX was down 138.16 points, or 0.96%, at 8:51 CST Monday morning to sit at 14,246.76.
