Canada’s Dollar Depreciates to 7-Week Low as Commodities Drop

By Chris Fournier

July 6 (Bloomberg) -- Canada’s dollar fell to the lowest in almost seven weeks against its U.S. counterpart as commodities such as crude oil and copper declined, diminishing the appeal of currencies linked to raw materials.

“The Canadian dollar continues to be pressured by lower crude oil prices,” said Michael Leavitt, a Montreal-based institutional-derivatives broker at MF Global Canada Co. “We’re looking for continued weakness to about the C$1.18 level.”

The Canadian currency fell 0.4 percent to C$1.1650 per U.S. dollar at 7:55 a.m. in Toronto, from C$1.1607 on July 3. It touched C$1.1679, the weakest since May 18. One Canadian dollar buys 85.83 U.S. cents.

Oil, Canada’s largest export, extended a three-week decline, dropping 4.4 percent to $63.78 a barrel. Copper fell for a third day in London. The nation relies on commodities for more than half its export revenue.

To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net