Canadian Dollar Hits Low for Year Amid Lagging Economic Growth

The Canadian dollar weakened to the lowest level in a year against its U.S. counterpart as speculation increased that economic growth will lag behind that in the nation’s largest trading partner.

The currency’s first monthly decline in three came as stronger-than-forecast U.S. economic data fueled bets the Federal Reserve could pull back on stimulus. Outgoing Bank of Canada Governor Mark Carney left interest rates unchanged and retained his warning they could rise even as retail sales stagnated and the rate of inflation slowed. The nation’s unemployment rate is forecast to remain unchanged when the report is released next week.