The Canadian dollar posted its biggest loss in a year against its U.S. peer as the nation's annual inflation rate fell in April to its slowest in more than three years, bolstering the case for relaxing monetary policy.
The Canadian dollar declined for a fifth time in six days versus its U.S. peer as a regional Federal Reserve president said the central bank may begin slowing monthly bond-buying as the labor market strengthens.
HSBC's Mr. Watt said the U.S./Canadian dollar pair remains in the broad range between C$0.9400 and C$1.0500 it has occupied since late 2010 when the Bank of Canada initially expressed its concern about the effects of the strong Canadian dollar on the ...
... the dollar to spur recovery, and their dismantling would allow the greenback to firm. The Canadian dollar, meanwhile, was down against the euro and up against the yen, with EUR/CAD up 0.45% and trading at 1.3190 and CAD/JPY up 0.03% at 100.36.
The fact the Australian dollar has dropped 3.7% against the Canadian dollar since the beginning of the month has suggested to traders the Canadian unit is vulnerable to selling pressure to bring its losses in line with other non-U.
It is an important factor in determining the success of specific Canadian sectors. How important a strong Loonie is to Canada's economy depends on who you ask says Jack Carr, an economist at the University of Toronto.