A Canadian dollar or loonie is pictured in North Vancouver, on March 5, 2014. THE CANADIAN PRESS/Jonathan HaywardThe Canadian Press
The Canadian dollar closed at a five-year low Tuesday as the resource-sensitive loonie was pressured by oil prices also at multiyear lows.
The loonie fell 0.41 of a cent to end at 87.64 cents (U.S.), its lowest close since July, 2009.
The December crude contract in New York fell $1.59 to a three-year low of $77.19 a barrel after Saudi Arabia cut prices to its U.S. customers.
Analysts say the move added to speculation that Middle East producers are working to defend market share amid surging U.S. output.
Prices have also been pushed down by a U.S. dollar that has gained in strength lately with the conclusion at the end of October of the U.S. Federal Reserve's quantitative easing program.
Canadian dollar, past year
Other commodity prices were also lower as investors also took in data showing the euro zone economy in precarious shape.
December copper was down 5 cents to $3.02 a pound while December gold fell $2.10 to $1,167.70 an ounce.
The European Commission has cut its growth forecast, saying growth will come in at 0.8 per cent this year, down from the 1.2 per cent growth it had forecast this spring.
Meanwhile, the loonie failed to find lift from trade data showing an improvement in Canada's trade balance with the rest of the world. Statistics Canada reported the trade balance moved to a surplus of $710-million (Canadian) in September from a deficit of $463-million in August.
Merchandise imports declined 1.5 per cent in September amid declines in energy and mineral product shipments.
Exports rose 1.1 per cent, led by the vehicle sector.