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Canadian Dollar Hits 5+ Year Low Versus US Dollar as Canadian Housing Starts Plunge 12%
Monday, 09 March 2009 21:24:55 GMT  |  Terri Belkas, Currency Strategist
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The Canadian dollar slumped against the greenback on Monday, hitting the lowest level since September 2004, as Canadian housing starts tumbled more than expected a rate of 12 percent in February, leading the annual rate to hit a more than eight-year low of 134,600 units. The declines were contained to homes in urban areas, which fell to a more than 10-year low of 107,800 from 126,700, while housing starts in rural areas held steady at 26,800. Overall, growth in Canada has taken a steep dive with the drop in oil prices from nearly $150/bbl in July as the export-dependent economy thrived off of the rally in commodities. When you also consider that it isn’t just prices that are falling, but also demand from the US – Canada’s biggest trade partner – it is easy to see why job losses have spiked, why consumption has waned in recent months, and why the Bank of Canada cut rates to a record low last week. 

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