The loonie slid to its lowest level in nearly two years Tuesday morning as the U.S. dollar gained traction on confidence over the direction of bond yields.
The Canadian dollar dropped 0.43 of a cent to 94.65 cents US shortly before stock markets opened, reaching a level it last hit in September 2010.
The drop came after the Canada Day holiday, when the currency experienced low levels of trading, and amid expectations that current U.S. monetary policy will help drive U.S. bond yields higher.
Economies around the world were also facing pressure, which drove down other currencies.
Australia's central bank left interest rates unchanged and said the Australian dollar is likely to continue falling, easing pressure on the economy.
And in China, manufacturing weakened in June amid a credit crunch.
In commodities, the August crude contract on the New York Mercantile Exchange was up 63 cents to US$98.62 a barrel on political concerns in Egypt.
The country's military issued an ultimatum to President Mohammed Morsi that gave him 48 hours to meet the demands of the millions who have taken to the streets seeking his ouster.
August bullion was down $3.20 to US$1,252.50 an ounce on the Nymex.
Read more Business News
- Banished from community?Poll
- Weed oil fire burns twoKelowna
- Rose vows to end wasteMunicipal Elections 2014
- Judge: Banishment OKKamloops
|QHR Technologies Inc||1.11||+0.06|
|Anavex Life Sciences||0.19||-0.0015|
|Copper Mountain Mining||1.94||+0.09|
|Sunrise Resources Ltd||0.06||0.00|
|Mission Ready Services||0.45||+0.06|
This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...
Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...
The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...