The Canadian dollar plummeted Tuesday after China’s decision to devalue the yuan affected crude prices.
The People’s Bank of China devalued yuan by almost 2% overnight, the largest decline in over two decades, in order to boost the economy following a bunch of weak economic data.
The loonie stood at 76.31 US cents from Monday’s 76.92 US cents.
It is too early to tell “whether or not this is the beginning of a competitive devaluation or a one-off revaluation of the Chinese yuan,” said Jack Spitz, Managing Director of Foreign Exchange at National Bank Financial.
A sluggish Chinese economy has been a main factor for oil’s slump over the previous year, dropping more than 4% Tuesday.
The material has been provided by InstaForex Company – www.instaforex.com