Canada’s dollar fell for a third week as central-bank Governor Stephen Poloz’s signal that interest rates may stay lower longer contrasted with a Federal Reserve that may let borrowing costs rise by trimming its bond-buying.
The Canadian dollar fell against the majority of its most traded peers after the country’s current account deficit narrowed less than expected in the third quarter, signaling export growth remains subdued.
The Canadian dollar rose versus most major peers after Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank won’t reduce the stimulus that’s spurred global risk appetite without a “preponderance of data” showing improvement in the economy of Canada’s biggest trade partner.
A parliamentary vote on Dec. 15 on Ireland’s 85 billion-euro ($112 billion) international aid package will pass, even without support from the opposition, John Curran, a government minister and spokesman, said.
Canada’s dollar traded in the narrowest range since April as the U.S. government shutdown reached a third day, raising concern the political gridlock will slow growth in the nation’s largest trading partner.
Canada’s dollar had its biggest first-half drop in three decades amid signs the nation’s economic recovery is trailing that of the U.S., where talk of reducing central-bank asset buying has made the greenback the world’s strongest currency this year.
Canada’s dollar fell for a second day as traders started to price in a reduction in monetary stimulus after the U.S. Federal Reserve surprised markets this week by maintaining its $85 billion in monthly bond buying.