Canadian dollar falls for third day in a row
The value of the Canadian dollar has fallen for a third day in a row after reaching parity with the U.S dollar last week. Mid-morning Monday, the loonie was trading at 98.47 cents U.S. Experts blame the U.S. Securities and Exchange Commission’s investigation into fraud at Goldman Sachs Group for the drop. “The market seems to be running to the safety of the U.S. dollar today,” wrote Scotia Capital currency strategist Camilla Sutton. “The impact of the SEC’s charge against Goldman Sachs has been sharp.” The fall is also linked to China’s recent efforts to cool its real-estate market, which has lowered the price of raw materials and hurt commodity-linked currencies. Said Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co: “The China story and weak commodities are weighing on the Canadian dollar.” The Bank of Canada is expected to discuss interest rates at a meeting tomorrow.