The Canadian dollar weakened the most in seven weeks after employment unexpectedly declined for the second time in three months in April, boosting bets the Bank of Canada may lower interest rates to support economic growth.
The Canadian dollar fell against all but one of its 16 most-traded peers as the Bank of Canada reiterated that borrowing costs may need to rise to prevent inflation from accelerating while keeping its target interest rate unchanged.
Canada’s dollar rose from the weakest this month versus its U.S. counterpart as the discount the nation’s crude oil trades at compared with the American benchmark was at its lowest level in more than three months.
Canada’s dollar rose against its U.S. counterpart for a second week amid speculation global central banks will take additional steps to sustain wavering economic growth, increasing the demand for riskier assets.
The Canadian dollar declined from the strongest level in almost three weeks against its U.S. counterpart amid concern a budget showdown in Washington will derail the economy of Canada’s biggest trade partner.