Canada’s dollar fell to the lowest in three years as central-bank Governor Stephen Poloz warned of low inflation, spurring bets the Bank of Canada will keep interest rates on hold as the Federal Reserve trims bond-buying.
The euro gained for a third straight month versus the yen after the currency region’s consumer-price index rose more this month than forecast, fueling bets the European Central Bank will refrain from further stimulus.
Canada’s dollar touched the weakest level in more than two years against its U.S. peer as the central bank prepared to meet Dec. 4 amid bets it will be slower to reduce monetary stimulus than the Federal Reserve.
Canada’s dollar gained the most in a month after Federal Reserve Chairman-nominee Janet Yellen signaled she’ll push the stimulus that has boosted global risk appetite to ensure a robust recovery in the U.S. economy.
The euro fell for a fifth day against the dollar as signs of economic weakness in the single-currency bloc fueled speculation the European Central Bank will cut interest rates as soon as at its meeting next week.