The Canadian dollar rose the most in three months against its U.S. counterpart as the U.S. passed a deficit-reduction plan to avoid automatic austerity and head off the threat of recession in the nation’s largest trading partner.
The Canadian dollar traded near a two-month low versus the greenback after weaker-than-forecast data last week on U.S. jobs and manufacturing spurred concern the recovery of Canada’s biggest trade partner is faltering.
The Canadian dollar rose for a fourth week, the currency’s longest winning streak since May 2009, as the Federal Reserve said it’s willing to ease monetary policy further to boost the U.S. economy, spurring demand for assets that benefit from global growth.
Canada’s dollar slid to the lowest level in three weeks as concern over Europe’s fiscal woes and signs of a global slowdown drove investors away from higher- yielding assets like stocks and commodities.
Canada’s dollar lost the most in four months against its U.S. counterpart after a nuclear power- plant crisis caused by Japan’s worst earthquake damped investor appetite for higher-yielding currencies.
Canada’s dollar fell to a two-week low versus the greenback as concern Europe’s debt crisis will broaden damped investors’ risk appetite and U.S. Treasury yields near seven-month highs made the U.S. currency more attractive.