Canada Dollar Falls on Fed View to Trail Higher-Yielding Assets Canada’s dollar fell against the majority of its most-traded peers as the Federal Reserve damped speculation reduced monetary stimulus was imminent, crimping demand for the currency versus other higher-yielding assets. Mexico’s peso led those that rallied against Canada’s currency this week even as crude oil, the nation’s largest export, reached a 16-month high and equities gained. Stephen Poloz at his inaugural policy meeting as Bank of Canada governor kept the benchmark rate at 1 percent, the 23rd in a row with no change. Statistics Canada may report July 23 that May retail sales rose the most since February. “We are seeing consolidation here with the Canadian dollar against the U.S. dollar,” Eric Viloria, senior currency strategist at Gain Capital Group LLC in New York, said in a telephone interview. “To see the South African rand and the Mexican peso do a little bit better after Bernanke’s comments, that’s something that’s usually the case. We saw U.S. yields move lower and when that happens that’s positive for emerging markets.” The loonie, as the currency is nicknamed for the image of the waterfowl on the C$1 coin, climbed 0.3 percent to C$1.0368 per U.S. dollar in Toronto, the second weekly advance. It weakened 2.2 percent against the Mexican peso and 2 percent versus Sweden’s krona. One loonie buys 96.45 U.S. cents. bloomberg/news/2013-07-20/canada-dollar-falls-on-fed-view-to-trail-higher-yielding-assets.html
Posted on: Sat, 20 Jul 2013 10:20:44 +0000
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