The Canadian dollar fell to an 11-day low against the US dollar during Monday's early trading as the crude oil prices fell on concerns that the plan for revival of the financial sector may get delayed, rekindling worries about the recession in the global economy.
In Asian trading, crude oil is currently down $0.93 at $51.45 a barrel, in electronic trading. Light sweet crude for May delivery closed at $52.34 per barrel on the New York Mercantile Exchange on Friday, down $1.96 a barrel.
The loonie slipped against the yen too and dropped to a 1-week low. Against the common currency of Europe, the Canadian dollar declined from a 2-week high.
Elsewhere, the Canadian dollar climbed to an 11-day high against the Australian dollar.
The Canadian dollar that closed last week's deals at 1.2383 against the US dollar, fell to an 11-day low of 1.2490 by about 1:05 am ET Monday. On the downside, the next likely support level for the Canadian currency is seen around 1.275.
The Canadian currency edged down against the Japanese yen, sliding to a 1-week low of 77.81 by about 1:15 am ET Monday. This may be compared with Friday's closing value of 79.09. If the Canadian currency slides further, 77.1 is seen as the next likely target level.
Industrial output in Japan plummeted by 9.4 percent in February compared to the previous month, the Ministry of Economy, Trade and Industry said today, falling for the fifth straight month and marking the third-largest fall on record. That was slightly worse than forecasts that called for a decline of 9.0 percent following the 10.2 percent decline in January.
The Canadian dollar pulled back against its European counterpart after rising to a 2-week high of 1.6410 during Monday's early Asian trading. The loonie dropped to 1.6522 against the euro by about 12:50 am ET, compared to Friday's New York session closing value of 1.6462. If the Canadian currency slides further, 1.675 is seen as the next likely target level.
From the euro-area, the euro-zone Business climate indicator and industrial confidence reports are expected in the upcoming session.
On the other hand, the Canadian dollar advanced against the Australian currency during this time period due to across the board weakening of the latter. The loonie climbed to an 11-day high of 0.8509 by about 12:20 am ET, with next upside target seen at 0.840 level. At Friday's New York session close, the Aussie-loonie pair was quoted at 0.8592.
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