Loonie drops to seven-month low
The Canadian dollar has fallen to the lowest level since October, sitting at 92.40 cents after global markets fell on concerns over European debt crisis and uncertainty in Asia.
This latest downturn in the markets show concerns over the solvency of Spanish banks and the growing tensions between North and South Korea.
Questions are being raised as to whether the Bank of Canada will raise interest rates next month as concerned Canadians still worry about Europe's debt crisis and the strength of the global recovery.
"With the Spanish headlines, there will be further speculation that the Bank of Canada will resist raising rates next week," said Andrew Pyle, associate portfolio manager at Bank of Nova Scotia.
In Canada, the benchmark S&P/TSX composite index fell two per cent in early trading and saw such commodities as crude oil and copper sink, while the Canadian dollar fell to a seven-month low over the long weekend.
Currencies in Australia and New Zealand also weakened as investors moved out of commodity currencies and to what they believe as the safety of the U.S. dollar.