Canadian Dollar Weakens to Eight-Month Low as Growth Stagnates

The Canadian dollar weakened to the lowest level in eight months against its U.S. counterpart as growth in the world’s 11th-largest economy stagnated and concern increased that European financial turmoil will resume.

The currency fell for the fourth straight week as the economy grew at a 0.6 percent annualized pace from October to December, the slowest since the second quarter of 2011. The report is the last major one before the Bank of Canada meets next week on interest rates. Inconclusive elections in Italy risk jeopardizing deficit-reduction austerity measures, driving investors away from higher-returning assets and currencies.