Canadian dollar falls further

By Marc Castro

May 25, 2013 08:09 AM EDT

The Canadian dollar fell to its lowest level against the US greenback with concerns that the gains achieved from the risky assets have outpaced the current economic growth.

The currency declined for the third straight week against the US dollar after the US jobless claims fell as the volume of orders increased for durable goods. This adds to the speculation that Federal Reserve Chairman Ben S. Bernanke would slow down monetary stimulus. This was due to the decline of oil exports which is Canada's largest exportable material as well as its stock values declined in the US and European bourses. 

The Canadian dollar fell 0.4% to Can$1.0318 per US dollar in Toronto and reached its lowest at Can$1.0394, the lowest level since June 5, 2012 where it pegged at one Canadian dollar to US$0.9692.

Also falling is the benchmark ten year government bonds of Canada, with its yield increasing slightly by three basis points or to 1.95%. On the other hand, the 1.5% security maturing June 2023 fell by 25 cents to just Can$95.94.

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