The dollar gained versus all its major counterparts after Federal Reserve policy makers indicated they’ll probably raise interest rates by the middle of next year with the U.S. economy showing signs of strengthening.
The Canadian dollar fell to its lowest level in four and a half years after the Federal Reserve increased its interest-rate forecasts, fueling speculation it will tighten monetary policy faster than the Bank of Canada.
The Canadian dollar declined the most in more than two weeks after employers unexpectedly eliminated jobs in February, reviving speculation the central bank may need to cut interest rates to bolster economic growth.
The dollar fell to the weakest level of the year after retail sales unexpectedly declined amid signs that adverse-weather conditions are weighing on economic growth as yet another storm battered the eastern U.S.
Canada’s dollar had its worst start to a year since at least 1972 amid speculation the central bank may favor cutting interest rates and as a selloff in emerging markets sent investors to the haven of the U.S. dollar.
The dollar fell to a three-week low after U.S. employers added fewer jobs than forecast last month, raising speculation the Federal Reserve may slow the pace of reduction in bond buying amid signs of uneven economic growth.