Canadian Dollar Fluctuates Before 2nd Day of Bernanke Testimony
The Canadian dollar fluctuated versus its U.S. peer before Federal Reserve Chairman Ben S. Bernanke’s second day of congressional testimony and a report that may show that U.S. durable goods orders fell in January.
The currency declined to the weakest level since June yesterday against the greenback after Bernanke defended the central bank’s asset-buying program, known as quantitative easing, and said spending cuts set to take effect in two days would harm the economy of Canada’s largest trading partner. The so-called loonie fell against a majority of its most-traded peers before a March 1 report forecast to show the world’s largest economy contracted in December, according to a Bloomberg survey of 20 economists.
“People are going to be paying attention to Bernanke,” John Curran, senior vice president at Canadianforex Ltd., an online foreign-exchange dealer, said by phone in Toronto. “If he comes out again as being more supportive of quantitative easing, that will strengthen the Canadian dollar.”
The Canadian dollar, known as the loonie for the image of the water fowl on the C$1 coin, was little changed at C$1.0264 per U.S. dollar at 8:32 a.m. Toronto time. One loonie buys 97.43 U.S. cents.
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