Canada’s dollar weakened for a third day as concern European’s debt crisis will weigh on global growth drove investors to the safety of its U.S. counterpart before a report forecast to show the nation added jobs.
Canada’s dollar advanced against the 17-nation common currency, which dropped against most of its 16 major peers as borrowing costs in France and Spain rose. Employers added 10,500 jobs to payrolls last month, according to the median of 24 forecasts compiled by Bloomberg News.
“Our core view is still for modest U.S. dollar appreciation,” said Chris Walker, a currency strategist at UBS AG, by phone from London. He said the result of higher risk- aversion and the decline in stocks is selling of commodity currencies such as the Canadian dollar against the greenback. “The focus is still on Spain,” he said.
Canada’s currency, nicknamed the loonie, dropped 0.2 percent to 99.87 cents per U.S. dollar at 7:43 a.m. in Toronto. It lost as much as 0.4 percent to 99.98 cents, the lowest level this week. One Canadian dollar buys $1.0012.
Statistics Canada will release the jobs report at 8:30 a.m. in Ottawa.
To contact the reporter on this story: Chris Fournier in Montreal at email@example.com
To contact the editor responsible for this story: Dave Liedtka at firstname.lastname@example.org