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 rose to a six-week high against the yen as U.S. employment gains exceeded forecasts, boosting speculation that the Federal Reserve will continue to pare monetary stimulus that’s seen as debasing the currency.
Federal Reserve economists in December 2008 forecast a financial crisis so severe that cutting the main interest rate to a record low wouldn’t be enough to revive growth, and that borrowing costs might remain near zero for more than five years.
Treasuries fell for a fourth day, while oil and the dollar rose after stronger-than-forecast jobs growth fueled optimism in the American economy. U.S. stocks were little changed as Russia said it may cut Ukraine’s gas supplies.
Federal Reserve Bank of New York President William C. Dudley said he sees a “reasonably favorable” outlook for the U.S. economy, even as elevated joblessness and too-low inflation warrant a high level of stimulus for a “considerable time.”