By Commodity News Service Canada.
Winnipeg, August 11 – The Canadian dollar was weaker against its US counterpart at midday Tuesday, after China unexpectedly devalued its currency two percentage points.
The Canadian dollar was at US$0.7616 or US$1 = C$1.3130 at 11:45 CDT Tuesday morning. Commodity-based currencies around the world were affected by the Asian giant’s move. It is the largest importer in the world so losses in the yuan mean losses in buying power.
China’s decision also reinforced worries that the country’s economy is losing steam, said an analyst.
The Canadian dollar was also suffering from a drop in crude oil prices.
Analysts say the US Federal Reserve may decide not to raise interest rates as a consequence of China’s decision.
On the commodity markets the September crude contract in New York fell US$1.65 to US$44.01 a barrel. The August gold contract rose US$3.20 to US$1,107.40 an ounce.
At 11:55 CDT Tuesday morning, the Toronto Stock Exchange was down 174.28 points to 14,292.11.
