In early deals on Monday, the Canadian dollar showed weakness against its U.S., European and Japanese counterparts as oil prices fell more than $1 to below $59 a barrel today, slipping toward a seven-week low on concerns about the state of the global economy as equities markets tumbled.

Crude oil for August delivery was down 50 cents at $59.39 at 4:37 am ET, after earlier falling $1.01 to a low of $58.88. London Brent fell 40 cents to $60.12.

Oil prices dropped 11 percent last week in their biggest weekly decline since late January as investors talked of the possibility of another dip in economic activity before the onset of recovery, which could delay a rebound in demand for fuel.

Oil shot up 40 percent last quarter and touched an eight-month high of above $73 a barrel as investors shrugged off weak fundamentals and banked on swift global economic recovery.

But a recent slew of bearish data around the globe, which suggested that some of the world’s largest economies were still struggling, prompted a sell-off in both oil and equities.

The Canadian dollar that closed Friday’s trading at 1.6237 against the euro fell to 1.6257 in early deals on Monday. The near term support level for the loonie is seen at 1.633.

During early trading on Monday, the Canadian dollar slipped against the yen. At 5:45 am ET, the loonie-yen pair touched 78.84, down from Friday’s close of 79.49. If the pair drops further, it may likely target the 78.6 level.

Industrial production in Japan grew a seasonally adjusted 5.7% month-on-month in May, revised down from a 5.9% rise reported on June 28, Ministry of Economy, Trade and Industry said today. On an annual basis, industrial output was down an unadjusted 29.5% in May, confirming the int ital estimates.

Meanwhile, a monthly survey from the Cabinet Office showed that Japanese consumer confidence rose to 38.1 in June from 36.3 in May. However, the index stood below the expected reading of 39.5.

The Canadian dollar declined to 1.1674 against the US currency during early deals on Monday. On the downside, 1.173 is seen as the next target level for the loonie. At Friday’s close, the greenback-loonie pair was quoted at 1.1640.

The U.S. monthly budget statement for June is expected in the New York session today.

In early deals on Monday, the Canadian dollar jumped to a new multi-week high of 0.8977 against the Aussie. The next upside target level for the Canadian currency is seen at 0.893. The aussie-loonie pair closed last week’s trading at 0.9066.