A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto in this January 23, 2015, file photo. The Canadian dollar pared earlier session losses against its U.S. counterpart on Tuesday, strengthening after data showed January growth was better than feared. REUTERS/Mark Blinch/FilesMARK BLINCH/Reuters
The loonie dropped sharply today in the wake of an overwhelming Greek "No" vote in the nationwide referendum for an international bailout package that included tax hikes and further austerity measures. The loonie fell as low as 79.01 cents US at 9:45 am ET and only recovered slightly to close at 79.03 cents, losing .0058 cents or 0.728% from Friday's close.
The Canadian dollar was under added pressure from falling oil prices which took their steepest dive in months, losing 6 per cent on the heels of the final vote count out of Athens and amid a possible July 7 nuclear deal with Iran that could ease sanctions and add more oil to an already stressed market.
Traders around the globe had braced for fallout Monday as news of the Greek vote spread. Stocks and bonds fell throughout Europe, and the euro tumbled across the board in early trading before finally stabilizing late in the session. At the behest of both Greek and Euro officials, Greece's outspoken and controversial Finance Minister Yanis Varoufakis resigned in the wake of the vote to help pave the way for more productive negotiations and a possible new bailout deal.
Greek banks will remain closed Tuesday and Wednesday as emergency meetings are planned between European leaders and the ECB to discuss the Eurozone's official response to the referendum. Early indications are, however, that time and patience with Athens are running thin.
International investors also contended with China's latest efforts to halt massive losses in its stock markets on Monday as Beijing unleashed a series of cash and credit infusions raising new warning flags over the world's fastest growing and second largest economy.