Canada Dollar Declines as Central Bank Maintains Rate, Language

The Canadian dollar fell against all but one of its 16 most-traded peers as the Bank of Canada reiterated that borrowing costs may need to rise to prevent inflation from accelerating while keeping its target interest rate unchanged.

The currency weakened for a second day against its U.S. counterpart as central-bank Governor Mark Carney said “some modest withdrawal of the present considerable monetary policy stimulus may become appropriate.” Canada’s dollar declined earlier amid speculation measures by the European Central Bank will fail to restore confidence in the region, slowing global demand for the nation’s exports.