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Canadian Dollar Suffers from Fear of US Default

October 15, 2013 at 23:35 by Vladimir Vyun

LooniesThe Canadian dollar fell today against safer currencies as talks about the US debt ceiling drag on. The critical point is near as politicians have just two more days to resolve their disagreement or face a default.

Hopes were high for a deal to be made over the past weekend or at least on Monday. Yet optimism is waning as no end to political bickering is in sight.

Prices for crude oil fell, giving no support for the currency of the oil-exporting country. Futures for crude slumped 1.29 percent to $101.09 in New York today. The loonie may yet rebound in case this week’s reports about manufacturing sales and consumer inflation will be good, but for now the currency remains subdued.

USD/CAD was up from 1.0351 to 1.0374 as of 23:31 GMT today. CAD/JPY dropped from 95.16 to 94.69. EUR/CAD ticked down from 1.4037 to 1.4029 following the slump to 1.3963.

If you have any questions, comments, or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

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