Canadian Dollar Falls on Concern Risk Assets Outpaced Economy

The Canadian dollar dropped for a third week against its U.S. counterpart amid investor concern that gains in riskier assets have outpaced global economic growth.

The currency weakened as orders for U.S. durable goods increased more than forecast in April, adding to speculation the Federal Reserve may slow monetary stimulus this year. Oil, Canada’s biggest export, declined for a second day on signs of rising U.S. inventories and a global economic slowdown. U.S. and European stocks fell, while Japanese shares rebounded from their largest drop since the 2011 earthquake.