2014.11.0322:37:26UTC+00Canadian dollar softens to weakest close in 5 years

The Canadian dollar diminished to its weakest close in over five years against the US dollar, as investors piled into the US currency and Bank of Canada governor Stephen Poloz showed a gloomier tone on the economy.

Poloz, in his first speech and press conference since BOC’s quarterly Monetary Policy meeting, voiced out more concern about the risk of weaker than anticipated inflation and soft growth than a leap in both, saying upside surprises were easier to manage.

"A predictably dovish statement. So I don't think there was any kind of new news. But it kind of reinforced the cautious tone we've been hearing from the Bank," said Don Mikolich, Executive Director of Foreign Exchange Sales at CIBC World Markets.

The loonie traded at C$1.1357 to the greenback or 88.05 US cents, milder than Friday's C$1.1286 or 88.61 US cents. It did not get through a recent low of C$1.13 during the session, its weakest close since July 2009.