Canadian Dollar Falls as Rally Slows

The Canadian dollar dropped versus 9 of most traded currencies this week on concern among speculators that its rally won’t last.

The Canadian currency fell against the euro as European government’s plans to help Greece bolstered confidence in the European currency. The currency slipped against the U.S. dollar after crude oil declined 0.7 percent for the third week. The loonie is closely tied with oil prices because Canada is one of the biggest exporters of the crude oil.

The race to parity between CAD and USD is slowing for a time. Analysts think that the currency should advance as the nation’s economy improves, but it’s just not apparent this week.

USD/CAD went up to 1.0264 this week after opening at 1.0161 on Monday. This growth follows last week’s decline to 1.0059, minimum level since July 2008.

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