The Canadian dollar is taking spill with falling oil prices, and traded at a new low of 86.58 cents against the US dollar Friday. Canada has the world’s third largest proven oil reserves, and relies on oil and gas exports for 30 percent of GDP.
The ‘Loonie’, as the currency is called in Canada, hit a 5-year low in October, and continues to sink along with oil prices, which have lost more than 43 percent from their June peak. Brent crude, the global benchmark, was trading at $62.95 per barrel at 13:15 MSK. West Texas Intermediate (WTI) crude futures slipped to $59.
The Canadian currency hit a high of $1.05 against the dollar in summer 2011, but has been stuck in a 5-year lull as investors sell off crude oil in the market.