A surge in Canadian oil exports to the U.S. helped propel the country’s economy in the first quarter to its fastest growth pace since 2011, even as domestic demand expanded at the slowest rate since the 2009 recession.
Canada’s dollar fell to a more than two-month low against its U.S. counterpart amid speculation growth in the world’s largest economy would spur the Federal Reserve to reduce stimulus, known as quantitative easing.
The Canadian dollar declined to a two-month low versus its U.S. counterpart after the rate of inflation slowed in April to the least in more than three years, bolstering the case for relaxing monetary policy.
The Canadian dollar posted its biggest loss in a year against its U.S. peer as the nation’s annual inflation rate fell in April to its slowest in more than three years, bolstering the case for relaxing monetary policy.
The Canadian dollar reached the strongest level since February after the nation’s economy grew faster than forecast and speculation increased that U.S. policy makers will sustain monetary stimulus measures.
Canada’s dollar strengthened against all 16 of its most-traded counterparts as global stocks rallied and Potash Corp. of Saskatchewan Inc. received a $39 billion purchase offer, boosting demand for growth assets.