Canadian Dollar Breaks Three-Day Slide as Risk Aversion Falls
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The Canadian dollar strengthened for the first time in four days against its U.S. counterpart as a decline in risk aversion renewed demand for currencies of nations that rely on natural resources.
The loonie, as the currency is nicknamed for the image of aquatic bird on the C$1 coin, declined the most in almost three months yesterday after Bank of Canada Governor Mark Carney suggested the prior day that he may reduce his economic outlook and delay raising policy interest rates. The currency gained after a report showed surging home housing starts in the U.S., Canada’s biggest trade partner.