Canadian Dollar Declines to Two-Week Low on Slowing Inflation
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The Canadian dollar touched a two-week low against its U.S. counterpart as the inflation rate rose the least in more than three years last month, damping bets the Bank of Canada will raise interest rates anytime soon.
The Canadian currency declined on the week as U.S. House Republican leaders scrapped a plan to allow higher taxes, throwing budget talks into turmoil. Canada’s dollar extended losses after the consumer price index fell outside the central bank’s target band, on dropping automobile prices and a moderation in gasoline costs. The so-called loonie declined as oil, the nation’s biggest export, and stocks dropped.