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 euro rose to a four-year high against the yen as annual inflation in Germany accelerated in November more than economists forecast, damping bets the European Central Bank will further loosen monetary policy.
Canada’s dollar slid to the weakest level since September before data tomorrow forecast to show the consumer-price index fell below policy makers’ target, boosting the case for the central bank to keep interest rates on hold.
Canada’s dollar touched the weakest level since September amid wagers it rose too much, too fast yesterday after Federal Reserve Chairman-nominee Janet Yellen said more U.S. economic growth is needed before stimulus is cut.
The Canadian dollar fell to a seven- week low after the Federal Reserve maintained its $85 billion in monthly bond purchases while leaving open the possibility for future reductions by saying economic growth persists.
The Canadian dollar fell to a seven- week low against its U.S. counterpart with the Bank of Canada embracing a more accommodative monetary policy and crude oil prices heading for the biggest weekly decline since June.
The Canadian dollar strengthened to a two-week high on speculation the Federal Reserve will maintain stimulus measures to counteract disruption in economic growth triggered by the U.S. government shutdown.