The Canadian dollar weakened against the majority of its most-traded peers as the nation lost jobs last month and U.S. payrolls grew less than forecast, fueling speculation the North American economy is slowing.
The Canadian dollar fell against the majority of its 16 most-traded peers as signs of an economic slowdown in the U.S., the country’s largest trading partner, damped investor appetite for higher-yielding assets.
Finance Minister Jim Flaherty safeguarded Canada’s status as the only Group of Seven country with a stable top credit rating after releasing a fiscal plan that eliminates the country’s deficit in two years.
Canada’s job creation in January was more than four times the median forecast, pushing the Canadian dollar to its strongest level since May 2008 and adding to evidence the country’s economic recovery may be accelerating.
Canada’s economy added the most jobs in eight months in September, led by hiring at schools, bringing the country’s jobless rate to its lowest since 2008 and adding to evidence the country is averting a new recession.