News » CAD Falls vs. USD & JPY, Rises vs. EUR

All the Canadian dollar bills denominationsThe Canadian dollar fell today against the US dollar and the Japanese yen, but advanced versus the euro, as the European debt crisis continues to eat away confidence of Forex market participants and makes them to seek refuge.

Concerns that the crisis will hurt the eurozone economy intensified after the European Central Bank said that the lending to European banks surged to the record. Lending to eurozone banks increased €214 billion to €879 billion in the week ended December 23. The ECB balance sheet rose €239 billion to €2.73 trillion.

The loonie rose against the greenback earlier on the positive outcome of the Italian debt auction. Borrowing costs of European nations continue to decline, but that’s not enough to ease concerns in the long term.