By The Canadian Press
Growing concerns about the global economy are weighing on currencies.
[TORONTO, ON] — The Canadian dollar moved lower Monday, as growing concerns about the global economy weighed on currencies.
The loonie was down 0.3 of a cent to 95.91 near midday, near a 5-1/2 month low.
The loonie has lost more than five cents in a little over a month as nervous traders avoided risk and flocked to the U.S. Treasury and reduced expectations for a rate hike from Canada's central bank.
The Bank of Canada is widely expected to leave its key rate unchanged at one per cent on Tuesday, and governor Mark Carney could also end up discouraging any thought of a rise in interest rates this year because of a slowing economy.
Finance Minister Jim Flaherty told reporters in Toronto he will discuss the worsening economic climate with his Group of Seven colleagues Tuesday morning.
Flaherty said he considers the global economic situation to be serious but added Canada's relatively small federal debt and deficit give the federal government room to act if the need arises as it did in the 2008-09 downturn.
In commodities, crude prices held below the US$83 a barrel level with the July contract on the New York Mercantile Exchange off 92 cents to US$83.11 a barrel.
The July copper contract on the Nymex fell two cents to US$3.29 a pound. Copper is widely viewed as a key economic barometer as it is used in so many industries and China has been the biggest purchaser of the metal.
Bullion prices for August were lower with the contract falling $5.40 to US$1,616.70 an ounce.