Canadian dollar drops for fourth day as oil falls

Thu Sep 11, 2008 4:53pm EDT
 
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* Canadian dollar ends session down 0.6 percent

* Bond rally reverses as rising equities lure investors

* Canada's July trade surplus misses expectations

By John McCrank

TORONTO, Sept 11 (Reuters) - The Canadian dollar fell for a fourth straight day against the U.S. dollar on Thursday, sliding 0.6 percent as oil prices dropped to near the psychologically important $100 a barrel level and drove down the commodity-linked currency.

Bond prices fell as rallying equities sapped the safe haven bid for government debt.

The Canadian dollar ended the North American session at C$1.0765 to the U.S. dollar, or 92.89 U.S. cents, down from C$1.0697 to the U.S. dollar, or 93.48 U.S. cents, at Wednesday's close.

The currency fell as low as C$1.0821 versus the greenback, or 92.41 U.S. cents, its lowest level in almost 13 months.

"We're seeing crude oil prices continue to sell off and approach the psychological $100 a barrel level, so I think that... continues to weigh on the Canadian dollar and that's likely to be the case going forward as well," said George Davis, chief technical strategist at RBC Capital Markets.   Continued...