Canadian Dollar Weakens as U.S. Budget Talks Hit Impasse

The Canadian dollar fell to its lowest level in almost a month as an impasse on U.S. budget negotiations renewed concern the showdown may push the nation’s biggest trading partner into recession next year.

The currency pared losses against its U.S. counterpart after Bloomberg News reported that U.S. Speaker John Boehner told fellow Republican lawmakers during a conference call that the U.S. House will convene on Dec. 30. Senate Majority Leader Harry Reid said earlier it looked like the U.S. was headed “over the cliff” and criticized the Republican-led House for not gathering with less than a week left to negotiate a budget deal to avoid $600 billion in automatic spending cuts and tax raises. Prices of natural resources and higher-yielding assets had dropped as investors became more risk adverse.