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Volume 15 Issue 407 Rabi ul Thani 26, 1437 AH / February 5, 2016-$1
Canadian dollar to resume losing streak in months ahead: Reuters poll The battered Canadian dollar is expected to weaken even more, tied to the ill fortunes of depressed oil prices and the prospect of another interest rate cut, a Reuters poll showed. After plunging to its weakest in 13 years in mid-January, toC$1.4689 on Jan. 20, the Canadian dollar, known as the loonie, rebounded more than 5 percent as the central bank kept interest rates on hold and the price of oil, a major Canadian export, rebounded. But there is little hope that a massive oil supply glut in world markets will be soaked up considering clear evidence of waning demand, particularly from China. That suggests there is more downward pressure on the loonie to come. “Everything is taking cues from crude prices, and nothing more strongly so than the Canadian dollar,” said Adam Cole, head of G10 currency strategy at RBC Capital Markets. The poll of 45 foreign exchange strategists forecast the currency to weaken Continued on Pg 4
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