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 fell from the highest in almost a week versus its U.S. counterpart as a renewal of risk aversion dimmed demand for assets tied to growth such as stocks and crude oil, the nation’s largest export.
Canada’s dollar dropped against the majority of its most-traded counterparts as equities declined on deepening concern growth in the economy of the U.S., the nation’s biggest trading partner, is slowing.
Canada’s dollar climbed to the highest level since May versus its U.S. counterpart, trading stronger than parity for a ninth day, amid speculation North American economic growth will sustain the nation’s exports.
Canada’s dollar weakened to a four- month low versus its U.S. counterpart as concern European Union leaders will fail to introduce new measures to stem the euro bloc’s debt crisis damped demand for higher-yielding assets.
Canada’s dollar advanced the most against its U.S. counterpart in two months and its debt declined as inflation accelerated the most since September 2008, spurring bets the Bank of Canada may resume raising borrowing costs.