The Canadian dollar continued to unwind from the record high it reached Wednesday morning, closing below $1.07 US in afternoon trading Thursday.
The loonie closed 0.91 cents lower at $1.0684 US.
Volatility was again the rule of the day — though not to the same extent as on Wednesday, when the dollar went through a three-cent swing. The swing on Thursday was about 1.75 cents.
Some analysts said profit-taking may have been behind the latest drop, but noted that the futures market still shows there are many who think the dollar will resume its climb.
Finance minister Jim Flaherty told reporters Thursday he was "concerned" by the dollar's recent appreciation, adding his voice to a growing chorus of political comment on the lofty loonie.On Thursday, Quebec Premier Jean Charest asked Prime Minister Stephen Harper to convene a gathering of all the premiers to discuss the loonie.
Ontario Premier Dalton McGuinty met with Harper on Thursday. McGuinty said the province's manufacturing industry needs lower interest rates to cool off the dollar and said Harper "listened intently" during the private meeting.
The PM said earlier this week that the sharp appreciation of the dollar required "some reflection," but stopped short of saying the Bank of Canada should cut rates.
The dollar reached a modern-era high of $1.1030 US in early trading Wednesday before fading later in the day as oil prices fell back.
Oil prices retreated further to $96 US a barrel on Thursday, down 37 cents. That still leaves oil near historical highs.
The loonie has been heading steadily higher for much of the last five years as commodity prices surge and the U.S. dollar weakens against most of the world's major currencies.
Since the start of the year, the Canadian dollar has jumped 27 per cent in value against its U.S. counterpart.
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