Canadian currency dropping during stock market sell-off

The dramatic stock market sell-off and fears of a double-dip recession in the U.S. are also having an impact on the Canadian currency.

After dropping to right around parity in early trading, the Canadian dollar ended around $1.01 compared to the U.S. dollar Monday, Aug. 8. It's the lowest level since March and down more than five cents in two weeks.

Considered a safe haven for investors because Canada is considered to be in fiscally good shape, the currency has weakened recently because of its close ties economically to the U.S. and its abundance in commodities that are dropping in price, said Steven Globerman, director of the Center for International Business at Western Washington University.