Canadian Dollar Falls As Oil Prices Decline
28 January 2015 - 7:47PM
RTTF2
The Canadian dollar weakened against most major currencies in
the late Asian session on Wednesday, as oil prices declined
following a data showing larger-than-expected rise in U.S. crude
inventories last week.
Crude oil for March delivery is currently down $0.65 to $45.58 a
barrel.
The data from the American Petroleum Institute showed on Tuesday
that the U.S. crude inventories rose by 12.7 million barrels in the
week to 405.1 million, compared with analysts' expectations for an
increase of 4.1 million barrels.
The official data on last week's inventories will be reported by
the U.S. Energy Information Administration today.
In a report, Canada's parliamentary budget watchdog said that
low oil prices would mean a deficit of $1.2 billion this year.
Traders await the Federal Reserve's monetary policy announcement
at 2:00 pm ET. No change in policy is expected.
Tuesday, the Canadian dollar fell 0.08 percent against the U.S.
dollar, 0.73 percent against the euro and 0.40 percent against the
Australian dollar.
In the late Asian trading today, the loonie fell to a 6-day low
of 0.9961 against the Australian dollar, from an early 2-day high
of 0.9799. At yesterday's close, the loonie was trading at 0.9831
against the aussie. If the loonie extends its downtrend, it is
likely to find support around the 1.01 area.
Against the euro and the yen, the loonie edged down to 1.4136
and 94.81 from yesterday's closing quotes of 1.4109 and 95.03,
respectively. The loonie is likley to find support around 1.43
against the euro and 93.50 against the yen.
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