TORONTO _ The Canadian dollar was slightly lower Thursday amid declining prices for oil and gold.
The loonie slipped 0.08 of a cent to 87.03 cents US.
Oil prices were slightly lower after sliding almost US$3 a barrel on Wednesday after OPEC cut its forecast for global demand for its oil. The January crude contract on the New York Mercantile Exchange was off 42 cents to US$60.52 a barrel
Metal prices were mixed with February bullion down $7 to US$1,222.40 an ounce while March copper edged up a penny to US$2.90 a pound.
The Canadian dollar has moved steadily lower in recent weeks as traders try to assess the damage that will be caused to the Canadian economy by oil prices that have fallen about 40 per cent since the summer. The fall has been sparked by lower demand prospects and an over-abundance of crude oil, thanks in large part to surging shale production in the U.S. and a refusal by OPEC to cut production to support prices.
``Oil prices reached fresh lows yesterday, in a relentless drop, which will weigh on domestic growth,'' said Camilla Sutton, Chief FX Strategist, Managing Director Scotiabank Global Banking and Markets.
``Canadian equities continue to underperform, warning that there is likely domestic and foreign selling, and therefore selling of the Canadian dollar.''
Sutton added in a commentary that she expects weakness in the Canadian dollar to carry on into 2015.