Commodity currencies declined Monday as investors reduced risk exposure amid concerns about global economic growth. The shift away from riskier assets impacted currencies tied to commodity exports.

Currencies Affected

• Australian Dollar: The Aussie fell against the U.S. dollar as weaker commodity prices and concerns about Chinese demand weighed on the currency.
• New Zealand Dollar: The Kiwi also experienced losses, mirroring the Australian dollar’s performance.
• Canadian Dollar: The Loonie weakened as oil prices declined and investors grew cautious about the Canadian economic outlook.

Factors Contributing to the Decline

Several factors contributed to the decline in commodity currencies:

• Global Economic Growth Concerns: Uncertainty about the pace of global economic recovery prompted investors to seek safer assets.
• Monetary Policy Expectations: Anticipation of changes in monetary policy by major central banks influenced currency valuations.
• Commodity Price Weakness: Declining prices for key commodities, such as oil and metals, put downward pressure on commodity-linked currencies.

Analysts suggest that commodity currencies may remain under pressure in the near term as global economic uncertainties persist.