Canada’s dollar posted the biggest gain against its U.S. peer in a year and a half as the economy added the most jobs in a decade in May and the unemployment rate declined.
The yen weakened for a second day against the dollar as the Federal Reserve holds a two-day meeting that may provide more information about when U.S. policy makers will start to reduce bond purchases.
Canada’s dollar advanced to the strongest level in three months against its U.S. counterpart as risk appetite swelled and stocks and crude oil, the nation’s biggest export, climbed.
The euro rose for the first time in four days versus the greenback as stocks and commodities advanced, damping demand for haven currencies.
The dollar rose against most major peers as Federal Reserve officials said they might reduce their $85 billion in monthly bond purchases “in coming months” as the economy improves, minutes of their last meeting show.
The dollar gained for the first time in four days against the yen before the Federal Reserve announces whether it will reduce stimulative bond-buying that’s been debasing the U.S. currency.
"The yen's benefiting from lower yields and that flight to safety."
- Joe Manimbo on Jan 06, 2015