Canadian Dollar Loses Ground Against the Greenback As Oil Slumps
Jun, 07th 16:56
Canadian dollar dropped steeply versus its American counterpart in U.S. trading session on Wednesday following a weekly report that showed a large rise in U.S. inventories of the commodity.
The currency pair USDCAD soared nearly 5 percent to trade around 1.35200 after data from the U.S. Energy Information Administration indicated that domestic crude supplies soared 3.3 million barrels last week.
The unexpected rise in U.S. crude oil stockpiles in the week ended June 2nd marked the first advance in the last nine weeks and contrasted with analysts’ forecast calling for a drop of 3.1 million barrels. The sharp rise raised concerns over U.S. domestic crude production that may surge to a record level next year, contributing to losses for oil.
As oil exports comprise a big part of Canadian economy, the Loonie tend to drop when oil prices edge lower.
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