Forecast from investment bank Goldman Sachs
The Canadian dollar closed down sharply Monday, hitting a fresh multi-year low as oil prices continued to retreat amid a bearish price forecast from investment bank Goldman Sachs.
The currency lost 0.71 of a cent to 83.56 cents US, its lowest level since late April 2009.
The February crude contract in New York fell $2.29 to US$46.07 a barrel after energy analysts at Goldman Sachs reduced forecasts for global benchmark crude prices, predicting inventories will increase over the first half of this year.
It forecast that West Texas Intermediate crude -- the North American benchmark --will trade at US$41 a barrel and global benchmark Brent at $42 in three months. It had previously forecast WTI at $70 and Brent at $80 for the first quarter.
Elsewhere on commodity markets, lower demand prospects sent copper to a 4 1/2 year low with the March contract three cents lower at US$2.73 a pound. February gold bullion gained $16.70 to US$1,232.80 an ounce.
The loonie failed to find lift from the Bank of Canada's latest business outlook survey, which said that Canadian businesses overall see brighter days ahead.