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Bearish Bets Batter Canada’s Loonie

Posted April 16, 2015

Under Economic Issues, International Trade Issues

(James Ramage – Wall Street Journal)

The Canadian dollar has gone south. Many investors are wagering on an extended stay.

An economic malaise worsened by the steep drop in oil prices has weighed on the currency of the U.S.’s biggest trading partner and crude-oil supplier. The Canadian dollar has slid 5.4% against the U.S. dollar so far this year after tumbling 8.6% in 2014. Among major currencies, only the euro, Swedish krona and Australian dollar have performed worse in 2015.

On Wednesday, a jump in oil prices and an upbeat message from the country’s central bank sent the currency higher against the greenback, but investors said they remain bearish on its prospects. Click here to read more.