Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Canadian Dollar Falls Second Day as Fed May End Stimulus

Jan. 4 (Bloomberg) -- The Canadian dollar fell against its U.S. counterpart for the second day before employment figures forecast to show the nation’s jobless rate increased in December.

The currency weakened against the majority of its most traded peers after the Federal Reserve revealed yesterday it may end monetary stimulus this year, allowing the currency to appreciate. Canada’s unemployment rate is projected to have increased in December to 7.3 percent from 7.2 percent the previous month, according to a Bloomberg survey of 22 economists.

“When you look at a Fed that’s been very dovish, to see any consideration on their part to think about maybe winding back some of the stimulus, or at least thinking about an end date for asset purchases, caught the market a bit off-guard,” said David Tulk, chief macro strategist at Toronto-Dominion Bank, by phone from Toronto. “It was a little bit late in the day where that was released yesterday, so it has a bit more of a disproportionate impact over the European session today and it’s spilled over into the currency.”

The Canadian dollar, known as the loonie for the image of the aquatic bird on the C$1 coin, fell 0.4 percent to 99.17 cents per U.S dollar at 8:57 a.m. in Toronto. One Canadian dollar buys $1.0084.

Policy makers at the U.S. central bank will probably end their $85 billion monthly bond purchases in 2013, according to minutes of their Dec. 11-12 meeting released yesterday.

To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.