The Canadian dollar lost ground against other major currencies ahead of the European session on Friday amid risk aversion, as investors focus on US reports of personal income and spending, manufacturing activity and construction spending along with the all-important jobs report later in the day for clues whether the Federal Reserve will have to raise interest rates sooner than expected.
The Canadian dollar fell to nearly a 2-month low of 1.0904 against the US dollar, from an early high of 1.0900. If the loonie extends its downtrend, it is likely to find support around the 1.094 area.
Against the yen, the loonie dropped to a 2-day low of 94.07 from an early high of 94.31. The loonie may test support near the 93.88 area.
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