Canadian dollar weakens to five-month low

TORONTO — The Canadian dollar weakened to a five-month low against its U.S. counterpart on Monday as a worldwide surge in coronavirus cases weighed on investor sentiment, with the currency shifting into negative territory since the start of the year.

The safe-haven U.S. dollar rallied and stocks globally were facing their longest losing streak since the pandemic first hit global markets 18 months ago, as the continued spread of the highlycontagious Delta variant raised doubts about the strength of economic recovery.

Canada is a major producer of commodities, including oil, so the loonie is sensitive to global economic prospects.

U.S. crude oil futures fell 3.5 per cent to $69.27 a barrel after OPEC+ overcame internal divisions and agreed to boost output, sparking concerns about a crude surplus.