Canadian Dollar Down on Central Bank Pressure

After trading near parity with the U.S. dollar in the beginning of the week, the Canadian dollar fell sharply after the national central bank stressed on the problems a strong currency could cause to the economic recovery of the North American nation.

The Canadian dollar had its first weekly loss versus its U.S. counterpart in 4 weeks after the Bank of Canada pointed that a strong currency could influence negatively the future of the Canadian economy, raising concerns among traders that the central bank could intervene on the currency’s fluctuations. Crude oil declined and also influenced the loonie rates.

USD/CAD traded at 1.0514 as of 19:18 GMT from 1.0466 on Thursday.

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