Loonie Goes Down on Falling Equities

The Canadian dollar declined against its U.S. counterpart and other major currencies after the equities dropped on the speculation that the federal prosecutors investigating whether to file the criminal fraud charge against the Goldman Sachs Group Inc.

The decline of the stocks outweighed the expectations for Greece to receive the aid package soon and the report about the expanding nation’s economy, which previously spurred the Loonie, as the Canadian currency nicknamed for the image of the aquatic bird on the C$1 coin.

The doubts about the increase of the interest rates are also sapping the Loonie of its strength. Previously the Bank of Canada dropped the conditional pledge to keep the benchmark rate at the record low level of 0.25 percent and hinted that the rates can be increased in June. Yet the words of the central bank’s governor “going forward, nothing is pre-ordained” sparked the speculation that the interest rates may not be increased by that time.

USD/CAD closed at 1.0156 after opening at 1.0047. EUR/CAD closed at 1.3521 after it opened at 1.3295.

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