Coronavirus, sinking oil prices, drive loonie downwards
The Canadian dollar fell to a seven-week low against the U.S. dollar on Monday, weighed down by lower oil prices, as investors dumped commodity-linked currencies amid fears about the spread of the latest coronavirus, which broke out in China a few weeks ago.
According to Reuters, the Australian and New Zealand dollars – also tied to commodity prices like the Canadian currency – were under pressure as well.
Investors are worried about the impact of the virus on travel, tourism and broader global economy.
U.S. crude oil prices fell to their lowest in more than three months on concerns that the virus could hamper economic growth and reduce demand for fuel. U.S. crude oil futures were down three per cent at $52.52 per barrel.
Oil prices have lost 13 per cent of their value since news of the virus grabbed headlines last week.