Canada’s dollar slipped the most in four weeks versus its U.S. counterpart as investors bet interest rates will remain on hold until late next year after the central bank said it will be careful about future rate boosts.
The currency reversed last week’s gain as the Bank of Canada kept the benchmark overnight lending rate at 1 percent for a second consecutive meeting and underlined threats to the economic recovery from falling exports and Europe’s sovereign- debt crisis. Government bonds fell before a report next week that may show a decline in labor productivity slowed. Crude oil, the country’s largest export, dropped.
