Have we topped out - Loonie loses almost three cents against U.S. dollar

Last Updated: Monday, November 12, 2007 | 4:47 PM ET

CBC News

The Canadian dollar continued to retreat Monday from the record highs that it reached last week against the U.S. dollar.

The loonie slipped 2.98 cents US to $1.0309 US in foreign exchange trading. There was no official close from the Bank of Canada as it was closed Monday for the Remembrance Day

The loonie has dropped more than 7 cents from its high of $1.1030 US that was reached on Nov. 7.

The Canadian dollar lost ground as the U.S. dollar found some footing against the euro and the U.K. pound.

The euro bought $1.4554 US, down more than a cent from the all-time high of $1.4752 reached Friday.

The British pound retreated to $2.0595 US from $2.0909 US. The pound has been trading recently at highs against the U.S. dollar not seen since the early 1980s.

Market watchers said the loonie is cooling after a rapid rise in recent months. The dollar just regained parity with the U.S. greenback in September.

"It's only natural when things start to overshoot and the pace of appreciation has been this fast to see corrections like this," said Mohammed Ali, vice-president at TD Securities in London.

Ali said a buildup in pressure for a December interest rate cut by the U.S. Federal Reserve will eventually help curb the loonie's recent slide.