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http://www.cbc.ca/story/business/national/2004/12/08/loonie-041208.html
TORONTO - The Canadian dollar fell sharply Wednesday as the U.S. dollar strengthened against other global currencies.
At 10:15 a.m. ET, the loonie was trading at 81.61 cents US, down 1.18 cents US. Earlier, the loonie fell as low as 81.25 cents US.
The Japanese yen, the Australian dollar, the U.K. pound and the euro were also all trading lower against the greenback.
"We're seeing the U.S. dollar itself strengthen almost across the board," BMO Nesbitt Burns senior economist Douglas Porter told CBC News.
"I think some of this is that sentiment was so universally negative on the U.S. dollar up until recently that just the slightest bit of good news for the U.S. dollar has sent it soaring higher," he said.
Porter said a correction in the loonie would not be shocking given its recent run-up against the U.S. dollar. He added that the Canadian dollar could slip temporarily under 80 cents US.
The drop in the loonie came after the Bank of Canada on Tuesday left interest rates unchanged at 2.5 per cent and hinted that rates would not rise for months. Most analysts had predicted that the Bank of Canada would stand pat in light of recent weakness in some key Canadian economic data.
FROM DEC. 7, 2004: Bank of Canada leaves interest rates unchanged
Wednesday's loonie weakness was also being blamed on lower crude oil prices. Oil slipped 64 cents to $40.84 US a barrel in morning trading.
The strength in the U.S. dollar led to a big drop in gold futures. Gold tumbled $15.40 to $438.30 US an ounce in New York..
http://www.cbc.ca/story/business/national/2004/12/08/loonie-041208.html
TORONTO - The Canadian dollar fell sharply Wednesday as the U.S. dollar strengthened against other global currencies.
At 10:15 a.m. ET, the loonie was trading at 81.61 cents US, down 1.18 cents US. Earlier, the loonie fell as low as 81.25 cents US.
The Japanese yen, the Australian dollar, the U.K. pound and the euro were also all trading lower against the greenback.
"We're seeing the U.S. dollar itself strengthen almost across the board," BMO Nesbitt Burns senior economist Douglas Porter told CBC News.
"I think some of this is that sentiment was so universally negative on the U.S. dollar up until recently that just the slightest bit of good news for the U.S. dollar has sent it soaring higher," he said.
Porter said a correction in the loonie would not be shocking given its recent run-up against the U.S. dollar. He added that the Canadian dollar could slip temporarily under 80 cents US.
The drop in the loonie came after the Bank of Canada on Tuesday left interest rates unchanged at 2.5 per cent and hinted that rates would not rise for months. Most analysts had predicted that the Bank of Canada would stand pat in light of recent weakness in some key Canadian economic data.
FROM DEC. 7, 2004: Bank of Canada leaves interest rates unchanged
Wednesday's loonie weakness was also being blamed on lower crude oil prices. Oil slipped 64 cents to $40.84 US a barrel in morning trading.
The strength in the U.S. dollar led to a big drop in gold futures. Gold tumbled $15.40 to $438.30 US an ounce in New York..