* Dollar hits decade-plus highs against loonie, Norwegian
crown
* Worries about China pressure export-oriented currencies
* Oil posts fresh near 7-year lows after Monday's 6 percent
drop
(Updates to U.S. trading; changes byline, dateline; previous
London)
By Richard Leong
NEW YORK, Dec 8 (Reuters) - The Canadian dollar, Norwegian
crown and currencies of other major oil exporters fell on
Tuesday, hitting decade-plus lows versus the dollar as concerns
about an oil supply glut and soft global demand sent crude
prices to near seven-year lows.
Growth-oriented currencies such as the Australian dollar
also remained on the defensive after Chinese trade data for
November did little to soothe concerns about China's economic
slowdown.
Falling oil and weak metal prices underpinned bets central
banks of export-reliant economies would embark on more stimulus
to weaken their currencies in a bid help exporters.
"It's a perfect storm for commodity currencies," said Mazen
Issa, senior currency strategist at TD Securities in New York.
He added high expectations the Federal Reserve would raise
U.S. interest rates for the first time in nine years have been
the other key factor that has hurt commodity-linked currencies.
Fed policy-makers meet next Tuesday and Wednesday.
The dollar, while stronger against commodity currencies,
retreated against the euro and the yen. The weak outlook on oil,
metal and other key exports has hurt stock prices worldwide,
reducing the greenback's allure against these major currencies.
The euro gained 0.4 percent at $1.0878 EUR= , while the
dollar fell 0.5 percent at 122.77 yen JPY= .
The dollar against a group of major currencies was down 0.2
percent at 98.437 .DXY .
On the flip side, the dollar touched C$1.3623, its
strongest against its Canadian counterpart since mid-2004. It
rose 1.5 percent versus the Norwegian crown, touching
8.8194 crowns, its highest since April 2002.
"With oil prices falling and some even talking about oil
falling to $30 a barrel, revenues for these countries will take
a beating and hence their currencies will remain under
pressure," said Jeremy Stretch, head of currency strategy at
CIBC World Markets in London.
U.S. crude prices fell to their lowest since early 2009,
last down 0.4 percent at $37.51 a barrel CLc1 . Brent futures
LCOc1 in London fell as low as $39.81 to their lowest since
February 2009. On Monday, they had tumbled 6 percent and touched
their lowest since February 2009.
The Australian dollar fell 0.8 percent to $0.7209
as this week's tumble in iron ore prices and the latest Chinese
data weighed on the currency's woes.
On Tuesday, spot iron ore fell to a decade low below $40 a
tonne, bringing the year-to-date drop to 45 percent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
OPEC crude production, oil prices http://reut.rs/1TGJ4cj
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>