Continued Weakness Likely For Canadian Dollar
Winnipeg, MB, Oct. 24, 2013 (CNS Canada), Oct 24, 2013 (Commodity News Service Canada, Inc. via COMTEX) --
dollar has weakened sharply relative to its US counterpart over
the past few days, and is expected to continue to decline heading
into the New Year, according to a currency analyst.
The Canadian dollar was trading at 95.91 US cents on
Thursday, October 24, having lost over 1.25 cents in two days.
Much of the weakness was due to a change in stance on interest
rate hikes from the Bank of Canada. Disappointing Canadian trade
statistics have added to that softer trend.
"We look for the currency to continue to weaken," said Mark
Chandler, head of Canadian FIC strategy at RBC Dominion
Securities in Toronto. He said RBC was still working with a
target of 93 US cents, or US$1=C$1.07. He expected that target
would be hit towards the end of this year or into the first
quarter of 2014, as the US moves closer to eventually tapering
its quantitative easing program.
With the preconditions in place for a weaker Canadian
dollar, Chandler saw little from a fundamental standpoint that
could counter the softer trend, at least for the time being.
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