Canada Dollar Drops Most This Year on Economic Outlook
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Canada’s dollar had the biggest weekly drop in almost five months on signs a faltering U.S. economic recovery will sap demand for the nation’s exports.
The loonie, as the currency is nicknamed, weakened yesterday after U.S. jobs growth in April trailed forecasts. It erased gains from a rally last week following Bank of Canada Governor Mark Carney’s April 24 speech to parliament that an increase in interest rates may be necessary to contain inflation. The nation’s unemployment rate increased last month, according to the median estimate in a Bloomberg News survey of 25 economists before the May 11 Statistics Canada report.