Canadian dollar drops as economic concerns wear into commodity prices | iNFOnews | Thompson-Okanagan's News Source
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Canadian dollar drops as economic concerns wear into commodity prices

TORONTO - The Canadian dollar moved lower Monday morning as commodity prices weakened and the expectations for economic data due later this week remained soft.

The loonie was down 0.41 of a cent to 97.42 cents US.

An outlook from economists is lacklustre for the domestic economy, with expectations that growth is slowing in both wholesale and retail sales, due on Tuesday and Thursday respectively.

In Europe, ongoing concern about the direction of the economy was weighing on commodities.

The July contract for crude on the New York Mercantile Exchange fell $1.22 to US$82.81 a barrel.

Gold bullion prices dropped $9 to US$1,619.10 an ounce while July copper edged up one cent to US$3.40 a pound.

Anxiety eased somewhat after a party headed by conservative leader Antonis Samaras got the most votes in Greek elections on the weekend, reducing the odds that the country will exit the 17-country European Union financial block.

Anxiety over a Greek exit had been so pronounced that many expected a run on banks Monday if political parties opposing a fiscal bailout had won the election.

The broader scope of the financial burden facing the continent soon overshadowed whatever breathing room the election in Greece had offered, however.

On Monday, the cost at which Spain can borrow money reached levels seen only in Greece, Portugal and Ireland —three countries that required massive bailouts.

The interest rate on Spain's 10-year bonds, an indicator of confidence in a country's ability to pay off loans, hit 7.08 per cent, a new high since Madrid joined the euro.

News from © The Canadian Press, 2012
The Canadian Press

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