Canada's dollar has depreciated 12 percent this month as commodities have weakened. Policy makers lowered the key rate a quarter-percentage point to 2.25 percent.
The Canadian dollar depreciated by as much as 1.8 percent to C$1.2123 per U.S. dollar, from C$1.1910 yesterday. It last traded at C$1.2094 at 9:47 a.m. in Toronto. The currency fell 2.4 percent on Oct. 15. One Canadian dollar buys 82.69 U.S. cents.
The central bank lowered its key rate to 2.5 percent from 3 percent on Oct. 8 as part of a coordinated effort to ease the economic effects of the financial crisis. Canada's dollar declined 2 percent that day.
The yen climbed to near a three-year high against the euro on speculation central banks will lower borrowing costs to limit the global economic slump, encouraging investors to sell higher-yielding assets funded in Japan.
The euro fell to a 19-month low against the dollar on bets the European Central Bank will cut interest rates at a faster pace than the Federal Reserve. The Australian dollar declined against the greenback after the Reserve Bank of Australia said it saw a ``strong economic case'' for its Oct. 7 interest-rate reduction, fueling expectations for another cut.
The yen rose 1.9 percent to 133.32 per euro at 9:48 a.m. in New York, from 135.92 yesterday. It touched 132.24 on Oct. 10, the strongest since level June 2005. The yen advanced 0.8 percent to 101 per dollar from 101.86. The euro fell 1.1 percent to $1.3199 from $1.3344 after touching $1.3154, the lowest level since March 2007.
Japan's yen rose 4.6 percent to 45.97 versus the Brazilian real and 2.51 percent to 61.91 per New Zealand dollar on bets investors will unwind carry trades, in which they get funds in a country with low borrowing costs and buy assets where returns are higher. Japan's 0.5 percent target rate compares with 13.75 percent in Brazil and 7.5 percent in New Zealand.
Russia's ruble weakened for a fifth straight day against the dollar on speculation banks and companies are converting funds borrowed from the government into foreign exchange on concern the currency will be devalued.
The ruble fell the most in more than a week against the central bank's dollar-euro basket as Citigroup Inc. and Goldman Sachs Group Inc. reiterated their forecast for the currency to depreciate by as much as 5 percent in the next 12 months.
The ruble lost as much as 0.8 percent to 26.5811 per dollar, and traded at 26.5560 by 3:28 p.m. in Moscow, from 26.3608 yesterday. It rose 0.2 percent to 35.1034 per euro, from 35.1659.
India's rupee fell, closing at a record low, as overseas investors increased sales of local equities on concern the global credit-market crisis will slow growth in Asia's third-biggest economy.
The rupee fell 0.2 percent to 49.09 per dollar at the 5 p.m. close in Mumbai, according to data compiled by Bloomberg.