News Column

Canadian Dollar Falls Against Majors

July 17, 2014

CANBERA (Alliance News) - The Canadian dollar declined against its key counterparts in European deals on Thursday, as investor sentiment waned in the wake of aggressive sanctions against Russia for its support to separatist movement in Ukraine.

The US and EU have slapped fresh sanctions on Russia, targeting major banks and energy companies, given the country's continued provocations in Ukraine.

Russian President Vladimir Putin has denounced the latest sanctions, saying they will boomerang and hit back at US national interests.

The loonie weakened on Wednesday after the Bank of Canada reiterated that it would keep interest rates at historic lows. But it recovered as BOC Governor Stephen Poloz refrained to talk down the currency in the press conference following the rate decision. The central bank held the key interest rate at 1%, with a "neutral" outlook on policy position, implying it is leaning neither toward rate increases nor cuts.

The loonie declined to 1.0077 against the aussie, coming off from an early high of 1.0044. At yesterday's close, the pair was worth 1.0057. On the downside, 1.015 is seen as next possible downside target level for the loonie.

The loonie fell to 1.0756 against the greenback, after having advanced to 1.0727 in early deals. The loonie is likely to eye support around the 1.08 mark. The pair finished Wednesday's trading at 1.0739.

The loonie was trading lower at 1.4552 against the euro, a 0.3% decline from early session's high of 1.4506. The next possible support for the loonie may be eyed at the 1.46 region.

After rising to 94.65 against the yen at 9:00 pm ET, the loonie retreated to 94.28. Further downtrend may take the loonie-yen pair to a support at the 93.5 mark. The pair traded at 94.62 when it finished deals yesterday.

Looking ahead, the US building permits and housing starts for June and weekly jobless claims for the week ended July 12 are due in the New York session.

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Source: Alliance News

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