Canada Dollar Strengthens on Better-Than-Forecast Data
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The Canadian currency gained against its U.S. counterpart as better-than-forecast economic data from both countries boosted the appeal of higher-yielding assets.
Canada’s dollar earlier touched the lowest level in almost two weeks on concern a budget impasse may plunge the U.S. back into recession. The so-called loonie erased losses as Canadian retail sales increased a fourth month, topping economist forecasts on gains in automobile and gasoline purchases, and gross domestic product in the U.S. beat projections. The Canadian dollar weakened yesterday after the International Monetary Fund said the Bank of Canada shouldn’t raise interest rates until the end of next year to help fuel growth.