That was still down 97 cents from Monday’s close.
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Canada’s newly elected Liberal government has pledged to run deficits to help stimulate an economy hindered by the collapse in prices for crude, until previous year the country’s biggest export, and consumer spending held back by near-record debt levels.
Tickets to see your favourite sports team might get more expensive if the Canadian dollar continues its downward trend, experts say.
Predictions of a loonie below 65 cents USA or oil at US$20 a barrel are overstating the case, he said, but market sentiment will remain negative until oil prices stabilize and the Bank of Canada clears up speculation about its monetary policy.
“The U.S. dollar becomes a refuge, and that’s what we’ve seen in the last few days”, he said.
The Canadian dollar fell below 69.5 cents cents US Thursday as stock markets around the world traded lower.
The currency has been sinking for some time as a result of lower oil prices, among other factors.
Eldorado Gold Corporation, a Vancouver-based gold mining company with operations in Asia, Europe and South America saw a 19.04 percent dip to 3.53 Canadian dollars a share after the CEO announced that operations would be suspended after the Greek government revoked the corporation’s mining permit due to environment concerns. “We recognize that those are important indicators for Canadians as they go about considering their situation”.
“I really think there is a good chance that we will pierce that [70 cent USA level], and in a sustainable way go lower”, he told BNN.
On Tuesday, Canada’s currency fell below 70 cents USA for the first time since the spring of 2003.
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The Dow Jones index futures were up 101.0 points at 16,464.0, S&P 500 futures advanced 12.75 points to 1,1937.75 and the Nasdaq futures gained 30.25 points to 4,342.75 about an an hour before Toronto and NY stock markets opened.
