The Canadian dollar or loonie dropped on May 9, as concerns related to the fiscal solvency of Spanish banks and political turmoil in Greece both weighed on the sentiment of traders engaged in forex risk management.
Canada's currency fell to $1.0049 versus the U.S. dollar or 99.51 U.S. cents by 7:52 a.m., according to The Montreal Gazette. The loonie closed at 99.83 cents or $1.0017 on the previous day. The ICE Dollar Index rose to as high as 80.272, before falling to 80.083, MarketWatch reports.
"The market is looking to buy the U.S. dollar, buy the yen. Back to rumours, back to speculation about how bad things can get, rather than how good things can get, so ‘the glass is half empty’ is really the sentiment that the market seems to be taking from what’s going on in Europe," Jack Spitz, managing director of foreign exchange at National Bank Financial, told The Montreal Gazette.
Corporate risk managers can utilize foreign exchange technology to gather real-time data on currencies such as the Canadian dollar.
