The Canadian dollar weakened Tuesday as commodity prices fell and investors sold the currency in favour of U.S. dollars.
The loonie fell to 96.90 cents (U.S.) from Monday's close of 97.25 cents as oil, copper and nickel all declined. It also hit a six-month low against the euro.
The currency's weakness may linger as investors buy more U.S. dollars ahead of the quarter's end to balance their books.
"The Canadian dollar is vulnerable to further selling pressure today stemming from U.S. dollar demand due to month end and quarter end," said Rahim Madhavji, president of Knightsbridge Foreign Exchange, in a morning note.
The move comes as the country's economy has slowed. A report Thursday on Canada's gross domestic product is expected to show the economy contracted 0.1 per cent in July.
The Canadian currency traded above parity in April, before moving lower amid global concern about risk. Its average level has been 96 cents over the past year.