The loonie, as Canada’s currency in known for the image of the aquatic bird on the C$1 coin, also fell against the yen and euro as crude oil, the nation’s biggest export, dropped. The Canadian dollar remained lower after the government’s new home price index was unchanged in March after four previous gains.
“Given how high commodities are getting, there was some concern about the impact it would have on global growth,” said Matt Perrier, director of foreign-exchange sales at Bank of Montreal’s BMO Capital Markets unit. “The run-up in prices was well overdone. It’s healthy that we see some correction.”
The loonie depreciated 0.5 percent to 96.62 cents versus the greenback at 8:41 a.m. in Toronto, from 96.19 cents yesterday. One Canadian dollar buys $1.0350. The currency touched 94.46 cents on April 29, the strongest level since November 2007.
The Standard & Poor’s GSCI Index of 24 raw materials fell for a second day and crude oil futures dropped 2.8 percent to $95.43 a barrel. Futures in New York advanced to $114.83 a barrel on May 2, their highest level since September 2008. Raw materials including crude oil account for about half of Canada’s export revenue.
The Canadian dollar declined 0.4 percent to 83.97 yen and slid for the first time in six days against the euro, depreciating 0.3 percent to C$1.3682.
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