Canadian Dollar Falls to 11-Year Low on Interest Rates Diverging
- Forecasters say Fed may usher in Canadian yield disadvantage
- Oil tumbles after U.S. inventories increase, crimping exports
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The Canadian dollar fell to its weakest in more than a decade as the Federal Reserve raised interest rates for the first time in almost as long, cementing the yield advantage U.S. Treasuries hold over the bonds of their northern neighbor.
The low, reached even before the Fed released its decision Wednesday, was touched as expectations for the move dovetailed with a sudden decline in the price of oil, until this year Canada’s biggest export, after data showed U.S. crude inventories climbed to the highest level for this time of year since 1930.