Canada’s dollar fell from the strongest in three months versus its U.S peer as the nation’s trade deficit widened to the fourth-largest on record, suggesting the economy is struggling to emerge from an export- driven slump.
The Canadian dollar gained for the first time in four days versus its U.S. counterpart as U.S. President Barack Obama said congressional leaders were “close” to a deficit-reduction deal to avoid tipping the nation’s largest trading partner into recession.
Canada’s dollar declined against its U.S. counterpart and most other major currencies on speculation the U.S. economic recovery will slow in coming months and amid heightened concern the European debt crisis may spread.
Canada’s dollar advanced against the majority of its most-traded counterparts after a report showed retail sales grew in September at the fastest pace in a year, improving the outlook for economic growth.
The Canadian Dollar weakened against the majority of its 16 most-traded peers after factory sales fell more than economists forecast and industrial production in the U.S. rose by the most in two years.
Canada’s dollar traded at almost a seven-month high versus its U.S. counterpart on speculation the Bank of Canada raising borrowing costs in the world’s 10th- largest economy will add to the currency’s allure.