The loonie, as the Canadian dollar is known for the image of the aquatic bird on the C$1 coin, fell down 0.2 percent to C$1.4368 per US dollar at 5 p.m.in Toronto, after earlier weakening to C$1.4397 per USA dollar, the lowest point in nearly 13 years.
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TORONTO, Jan 14 Canada’s main stock index rose on Thursday after falling to a fresh 2-1/2-year low, as a rally in crude oil prices helped support energy stocks, while losses were unwound for financial stocks.
Air Canada was down 7 percent at C$8.30.
With a retreat in gold prices, gold miners B2Gold Corp and Barrick Gold Corporation declined 2.50 percent and 2.76 percent, respectively.
Bombardier Inc fell 4.1 percent to C$1.17.
“Every passing day that oil drops, there’s more likelihood of a rate cut and more likelihood of more drops in the Canadian dollar”, he said.
In an annual report released by the Food Institute of Guelph University, an Ontario-based educational institute, the costs of vegetables, fruits, and nuts are items most vulnerable to a weakened currency.
Vancouver mining company Teck Resources credits the low Canadian dollar for helping the company weather the downturn in commodity prices, with the company able to sell its copper and coal at US prices while pay operating costs in Canadian.
Market sentiment still focused on the oil price at the moment.
The Canadian dollar and Toronto Stock Exchange were teetering between positive and negative Wednesday morning. “We recognize that those are important indicators for Canadians as they go about considering their situation”.
Like oil, the currency’s value fluctuates on a second-by-second basis.
The Conference Board of Canada says overnight travel from the USA increased about seven per cent last year and is expected to rise another 3.3 per cent this year. On Tuesday, crude futures dipped below US$30 for the first time in years.
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It marked the first time the loonie was below 70 cents US since the spring of 2003, according to Bank of Canada data.
