During early deals on Monday, the Canadian dollar declined to new multi-day lows against the currencies of Europe and Australia as the oil price fell below $51, which accounts for about 10 percent of the country's export revenue.

Oil fell to below $51 a barrel today after the International Energy Agency slashed its forecast for oil demand.

The IEA said on Friday that world oil demand will fall by 2.4 million barrels per day this year and said developed countries' oil inventories in February rose to their highest since 1993.

U.S. crude fell $1.28 to $50.96 by 0934 GMT on Monday, the first day of trade since Thursday's nearly 6 percent gain on the back of a rally on Wall Street. ICE Brent crude fell 98 cents to $53.08.

On the other hand, the loonie showed strength against the US dollar and the Japanese yen. The Canadian currency climbed to a 1-week high against the yen.

Against the US dollar, the Canadian currency edged higher during early deals on Monday. At 3:10 am ET, the loonie reached a high of 1.2243 against the dollar, compared to 1.2239 hit late New York Thursday. The next upside target level for the Canadian dollar is seen around 1.200. The dollar-loonie pair is currently trading at 1.2266.

The Canadian dollar that closed Thursday's North American session at 1.6165 against the European currency declined to a 4-day low of 1.6207 at 4:50 am ET Monday. The loonie is now worth 1.6176 against the euro with 1.645 seen as the next target level.

Against the Japanese yen, the Canadian currency rose to a 1-week high of 82.32 at 3:10 am ET Monday. If the pair gains further, 87.0 is seen as the next target level. The loonie-yen pair is currently quoted at 82.12.

On the economic front, a report released by the Bank of Japan showed that Japan's corporate goods prices index or the producer price index fell 0.2% month-over-month in March, in line with the expectations. During February, the index declined 0.5%. Producer prices have been seeing a declining trend since September 2008.

The Canadian dollar that closed Thursday's New York deals at 0.8807 against its Australian counterpart tumbled to a 10-day low of 0.8885 at 4:50 am ET Monday. On the downside, 0.894 is seen as the next target level. The aussie-loonie pair is presently trading at 0.8870.

There are no important economic reports scheduled to be released today from North America.

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