Loonie Plunges Below 71 Cents as Crude Oil Jumps Amid Global Turmoil

The Canadian dollar hit a new low on Wednesday, falling below the 71 US cent mark for the first time since July 28. The loonie finished at US$0.7094 or US$1=C$1.4096, down from US$0.7110 or US$1=US$1.4064 the previous day.

The decline in the Canadian dollar was accompanied by a surge in crude oil prices. Iranian President Masoud Pezeshkian's statement at the United Nations General Assembly that his country would never surrender to the US or Israel sparked the increase, with West Texas Intermediate rising US$2.10 per barrel to US$92.62 and Brent crude advancing US$4.28/barrel to US$103.53.

The TSX/S&P Composite Index also fell on Wednesday, erasing Tuesday's rally due to inflation fears in the US. The index dropped 584.18 points to 35,751.43.