Price of Crude Brings Down Dollar

With the three month old rally on the stock markets as financial stocks led the Toronto Stock Market to drop nearly 300 points while the Canadian Dollar went down more than two U.S. cents, $0.02 U.S.Investors wondered about how long the rally that pushed the stock indexes in the United States and Canada would hold as it went up more than 30$ this spring, well it is beginning to crumble.

Toronto’s S&P/ TSX composite index moved 298.67 points or 2.8% lower to close at 10,290.12.

The Canadian dollar dropped 2.29 cents (U.S.) to $90.22, even going as low as $89.94 while the America currency strengthened and the loonie sold off on falling oil prices.

The TSX financial sector went down 2.3 per cent as Royal Bank of Canada (RBC) declined 88 cents to $44.01 (Canadian) and Scotiabank lost $1.15 to $38.70.

With these changes happening rapidly around us we can only hope that the dollar strengthens again to keep a level more suitable for these trying times.