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Loonie Slips as Commodoties Sag

Ally

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TORONTO (Reuters) - The Canadian dollar slipped against the U.S. dollar on Wednesday morning as the price of oil and metals weakened and global equities slid on doubt about economic recovery.

At 7:41 a.m., the currency was at C$1.1367 to the U.S. dollar, or 87.97 U.S. cents, down from Monday`s finish at C$1.1346 to the U.S. dollar, or 88.14 U.S. cents.

Early on Wednesday, European and Asian shares weakened as some investors unwound trades betting on quick economic recovery. U.S. stock index futures pointed to a higher open.

The Canadian dollar was expected to draw direction from its key drivers -- U.S. and Canadian stock markets, as well as commodity prices in general, and the price of oil in particular.

"I think there`s still fear about what is going to happen today with the equity market," said J.P. Blais, vice president foreign exchange products.

Read the full article here.
 
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