BUSINESS

Canadian Dollar Tanks Again As Oil Prices Hit Lowest Point In Almost 7 Years

12/08/2015 11:19 EST | Updated 12/08/2016 05:12 EST

TORONTO — The Canadian dollar and the TSX continued to fall Tuesday.

North American stock markets posted triple-digit losses for a second consecutive session, although the decline in Toronto was much smaller than the previous day's rout.

At the close, the S&P/TSX composite index was down 120.36 points at 12,922.47 as the price of oil steadied in a range near seven-year lows.

That followed a big drop in crude on Monday that helped send Canada's main market down more than 300 points or some 2.4 per cent.

Meanwhile, the commodity-sensitive Canadian dollar continued its decline, falling 0.40 of a cent to 73.60 cents U.S., a level last seen in June 2004.

Brent crude bounced back after falling below US$40 for the first time in nearly seven years, Bloomberg reported, in the wake of OPEC's recent decision not to limit oil production. The markets see that as a sign that the global oil glut will continue.

U.S. markets were also deeply in the red amid heavy selling of raw material and energy stocks.

The Dow Jones industrial average lost 162.51 points to 17,568.00 after falling 117 points on Monday, while the broader S&P 500 was 13.48 points lower at 2,063.59 and the Nasdaq edged down 3.57 points to 5,098.24.

On commodity markets, the January contract for benchmark U.S. crude oil ended the session 14 cents lower at US$37.51 a barrel, while January natural gas was unchanged at US$2.07 per mmBtu and February gold was up a dime at US$1.075.30 an ounce.

— With a file from The Huffington Post Canada