Canadian dollar shifts lower as key commodities lose steam on economic concerns

TORONTO – The Canadian dollar was down half a cent on Monday morning as commodity prices weakened on questions about whether the global economy’s strength has been overestimated.

The loonie was down 0.50 of a cent to 101.92 cents US before North American stock markets opened, as traders moved into safe havens like the U.S. dollar.

In commodities, November crude on the New York Mercantile Exchange moved down $1.07 to US$91.82 a barrel.

New efforts to revive growth from central banks in Europe, Japan and the U.S. have not been enough to overcome pessimism about the global economy’s prospects. When economic growth slows, so does demand for fuel which typically results in lower oil prices.

December bullion decreased $16.70 to US$1,761.30 an ounce. December copper was off six cents to US$3.73 a pound.

The decline of commodities has helped to slow the growth of the Canadian dollar, which surged past parity with the U.S. currency this summer.

Canadian commodities will likely be part of the focus of Bank of Canada governor Mark Carney’s speech in Ottawa this afternoon, which will also deal with opportunities for trade.