Low Crude Oil Prices Are Crushing the Canadian Loonie

CAD to USD exchange rate has been falling over the last two weeks amid falling crude oil prices. At the end of latest session, Loonie to USD exchange rate was standing around 0.77, which is well below from this pair’s exchange rate of 0.78 achieved two weeks ago. The strength in USD exchange rate has also been hurting the currency conversion rate of CAD to US dollar.

CAD/USD pair currency exchange rate was under stress throughout the last couple of months, in the midst of the unpredictability in raw petroleum costs and different products.

What’s more, softening business environment and the low job rate is additionally affecting the Canadian exchange rate to the US dollar. In the most recent month alone, Canada lost very nearly 31K jobs because of low ventures.

CAD exchange rate is frequently alluded as commodity based currency. The rise and fall of the Canadian currency conversion rate against the US dollar currency rate is directly correlated with the movement of commodity and oil prices. The nation’s primary wellspring of income is originating from the fares of products and unrefined petroleum.

The Canadian Loonie exchange rate hit the lowest level against the US dollar exchange rate of 61.98 pennies in 2002.

The Bank of Canada (BOC) has as of late declined its financial and economic growth figure for the entire year in light of lower prices for oil and other commodities. Canada’s 2Q Gross Domestic Product (GDP) is likely to decline 1.5% following the 2.4% growth during the first quarter of 2016.

In addition, crude oil prices are unlikely to rise in the following months, as the market continued to be oversupplied compared to the demand. Canada pumps almost 4.2 million barrels of oil each day, which is the back bone for the country’s economy.