The Canadian dollar has closed below 70 cents U.S. for the first time in nearly 13 years. The loonie settled Wednesday at 69.71 cents U.S., down 0.43 of a cent since Tuesday’s close.
The last time the Canadian dollar closed beneath the 70-cent U.S. mark was on April 30, 2003.
The currency has been sinking for some time as a result of lower oil prices and other factors and fell below 71 cents U.S. for the first time in more than a decade last Wednesday.
With oil prices continuing to trade lower, recent forecasts have hinted the Canadian dollar is poised to trade at levels closer to — or even below — 60 cents U.S., which would break the currency’s all-time low of 61.69 cents U.S. set in January 2002.
Oil prices have declined precipitously since early fall 2014 as over-production has sent global reserves soaring, creating a glut that doesn’t appear to be going away soon.
“Oil prices remain the primary risk for the Canadian dollar, as they remain precariously low,” Rahim Madhavji, currency strategist at Knightsbridge Foreign Exchange, said.
MORE: Latest coverage — plunging loonie
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