Toronto’s main stock index and the Canadian dollar were down sharply Tuesday as the devaluation of China’s yuan sent ripples through the world’s financial markets.
The loonie was down three-quarters of a U.S. cent, falling more than three quarters of cent to 76.16 cents U.S.
The S&P/TSX composite index dropped 159.03 points to 14,307.36, nearly offsetting a 163.4-point gain on Monday.
MORE: Complete coverage of plunging loonie
The decline came as currency, equity and commodity markets around the world responded to a move by China’s central bank, which lowered the yuan’s value relative to the U.S. dollar by nearly two per cent. That brought the yuan to the lowest range in nearly three years.
On U.S. markets, the Dow Jones industrial average fell 207.12 points to 17,408.05, the Nasdaq index fell 46.59 points to 5,055.21, and the S&P 500 fell 19.69 points to 2,084.49.
Benchmark North American oil prices declined $1.76 at US$43.20 a barrel and the September contract for natural gas was down three cents at US$2.82.
MORE: 3 reasons why gas prices are rising while oil tanks (again)
WATCH: Washington State retailers are getting hammered by the low Canadian dollar. Elaine Yong took the temperature of cross-border shoppers today.
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