The Canadian dollar is falling as crude oil prices steadily decline.
The loonie slid 0.3% lower to trade at 73.48 U.S. cents on Dec. 12, marking the biggest decline among G10 currencies.
The Canadian dollar is slumping as the price of crude oil, one of Canada's top exports, falls to a six-month low.
West Texas Intermediate (WTI) crude oil, the U.S. standard, declined nearly 4% on Dec. 12 to $68.50 U.S. a barrel. Earlier this year, WTI crude oil was trading above $90 U.S. per barrel.
Brent crude oil, the international benchmark, is trading at $73.15 U.S. a barrel and has also steadily declined in recent months.
Other issues weighing on the Canadian dollar include a slowing economy and expectations that the Bank of Canada will begin lowering interest rates in 2024, say analysts.
Futures traders are betting that Canada’s central bank will begin cutting its benchmark overnight interest rate from its current level of 5%, a 22-year high, by April.
However, commodity prices, and crude oil prices in particular, tend to have an outsized influence over Canada’s currency.
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