By Chris Fournier
Nov. 25 (Bloomberg) -- Canada’s currency fell for the first time in three days after the price of crude oil and gold declined on concern that a rally in worldwide stock markets won’t last.
The Canadian dollar, dubbed the loonie for the aquatic bird on the one-dollar coin, fell as much as 1.3 percent to C$1.2478 per U.S. dollar, from C$1.2319 yesterday. It traded at C$1.2426 at 7:39 a.m. in Toronto. One Canadian dollar buys 80.47 U.S. cents.
“Weaker gold and oil prices are weighing on the loonie,” said Steven Butler, director of foreign-exchange trading at Scotia Capital Inc. in Toronto. “The market seems to doubt this equity rally.”
Crude oil for January delivery fell as much as $2.40 to $52.10 a barrel on the New York Mercantile Exchange. Gold for immediate delivery declined as much as $16.50 to $803 an ounce.
Europe’s Dow Jones Stoxx 600 Index climbed 1.1 percent, extending yesterday’s 8.4 percent gain, the most in six weeks. London’s FTSE 100 Index yesterday added 9.8 percent, the most on record. It added another 0.7 percent today.
Canada’s currency will slip to C$1.25 against the U.S. dollar by the end of this year, according to Bank of Montreal forecasts.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
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