Canadian Currency Falls To Two-Month Low Amid Speculation On Fed. Canada`s dollar achieved the lowest in more than two months on assumption of a strengthening U.S. economy will trigger the Federal Reserve to trim down stimulus measures that have supported to lift development worldwide. A measure of the currency’s volatility advance to a one-month high, while crude oil, Canada’s biggest export, declined to the weakest point since June. The U.S. Dollar progressed versus the majority of its 16 most-traded counterparts after reports last week showed American payrolls and gross domestic product surged more than estimated. The U.S. is Canada’s largest trade partner. “The market is still digesting the implication of the strong U.S. jobs report from Friday, and also we don’t have a lot of data this week,” Greg T. Moore, a currency strategist at Toronto-Dominion Bank’s TD Securities unit, said by telephone from Toronto. “The focus is definitely on the U.S. right now,” and the greenback will dominate the direction of the currency pair, Moore said. The loonie, as the Canadian currency is nicknamed for the image of the waterfowl on the C$1 coin, downgraded 0.2 percent to C$1.0495 per U.S. dollar at 5 p.m. in Toronto. It reached C$1.0509 per U.S. dollar, the worst point since September 5. One Canadian dollar purchases 95.30 U.S. cents. The Canadian currency was the third-worst performer in the past six months among the 10-developed nation currencies recorded by the Bloomberg Correlation-Weighted Index. The loonie relinquished 3.8 percent, trailing the Australian dollar and the Norwegian krone. The U.S. dollar skyrocketed 0.4 percent.
Posted on: Wed, 13 Nov 2013 10:24:04 +0000
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