The Canadian dollar touched the highest level against its U.S. counterpart in almost two months as the Bank of Japan’s monetary stimulus measures sent investors in search of higher-yielding currencies.
The yen rallied against all of its 16 most-traded peers after it failed yesterday to weaken beyond 100 to the dollar, a level not seen in four years, and a technical indicator signaled it had fallen too much, too fast.
The Canadian dollar fell against its U.S. counterpart for the first time this week as U.S retail sales dropped the most in nine months and on reports that steps to strengthen Europe’s financial system were faltering.
The yen slid the most against the dollar in more than three years after the Bank of Japan outstripped forecasts and announced unprecedented measures to fight deflation, spurring concern the currency will be debased.
The dollar declined to the lowest level in more than a week against the euro after U.S. employers added fewer jobs in March than forecast, fueling speculation growth in the world’s biggest economy is slowing.
Treasuries gained, pushing 10-year note yields to the lowest level in almost four months, as a weaker-than-expected jobs report added to speculation that growth in the world’s biggest economy is slowing.
The Canadian dollar weakened against the majority of its most-traded peers as the nation lost jobs last month and U.S. payrolls grew less than forecast, fueling speculation the North American economy is slowing.
Swaps traders have pushed back expectations for the Federal Reserve’s first interest-rate increase since adopting extraordinary monetary stimulus to about November 2015 after a government report showed slower-than- forecast jobs growth in March.