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Wednesday, August 10, 2011

Canadian Dollar Receives Hit from US

Canada’s dollar plunged today as demand for the nation’s assets deteriorated because of pessimistic outlook for the economy of the biggest nation’s trading partner — the US.
The depressed mood caused fall of equities and decline of commodities. The MSCI World Index of stocks slumped 1.9 percent, while the Standard & Poor’s 500 Index fell as much as 2.1 percent.

There are positive sing, though, that may precede a change of the trend. The S&P/TSX Composite Index rose 0.4 percent. Crude oil, the main export of Canada, rallied 3.2 percent to $81.82 per barrel. Yield on the two-year government bonds fell five basis points to 0.81 percent.

USD/CAD jumped from 0.9771 to 0.9921 as of 19:19 GMT today. EUR/CAD advanced from 1.4044 to 1.4088 after reaching the intraday high of 1.4174. CAD/JPY fell from 78.70 to 77.38 and declined during the day to 76.82, the lowest level since March 2009.

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