The Canadian dollar was down 0.57 of a cent at 76.66 cents US.
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“Those are the two things will really drive the currency in the short term”, he said.
The dollar has been on a downward slide since last summer, when the price of oil started to weaken.
Oversupply could prove to be a recurring problem in the coming months as some USA oil rigs wind down output in an effort to curtail production against demand.
Oil prices settled at the lowest level since April, dropping $1.67 to US$49.19 for the September contract.
While markets are near record highs, June-quarter earnings of S&P 500 companies are expected to dip 1.5 per cent, according to Thomson Reuters data, well below the 5.9 per cent gain forecast on January 1.
In the US, the Dow Jones industrial average dropped 68.25 points at 17,851.04 while the Nasdaq fell 36.35 points to 5,171.77.
The mining sector vapored 3.22 percent, with gold shares shrinking greatly after gold futures on the COMEX division of the New York Mercantile Exchange dropped sharply Monday over investors’ expectations for a future increase in the U.
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“There is concern regarding the lack of organic revenue growth and the strong dollar which will continue to be a drag as we head into the second half of the year but that effect should moderate over time”.
