The euro dropped to a three-month low as the Ifo institute’s gauge of German business confidence fell, adding to signs that may prompt the European Central Bank to boost stimulus as soon as next month.
Futures traders reduced bets that the Canadian dollar will decline against its U.S. counterpart by the most on record amid speculation China will add monetary stimulus, boosting demand for raw materials and energy.
Canada’s dollar gained to the strongest level in more than six weeks after the economy added more jobs than forecast in March, rebounding from a decline the previous month, and the unemployment rate unexpectedly fell.
Canada’s dollar strengthened for the first week in three as risk appetite outweighed concern that Europe’s sovereign-debt crisis is worsening, sending crude oil, the nation’s biggest export, and stocks higher.
Canada’s dollar weakened the most this month versus the greenback and the yen as evidence of a slowing U.S. economic recovery made the currencies of countries reliant on commodity exports less attractive.