Canadian Currency Weakens as Current-Account Deficit Increases
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Canada’s dollar declined versus 10 of its 16 most-traded counterparts as the country’s current-account deficit widened to the second-largest on record.
The currency, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, briefly extended losses after U.S. House Speaker John Boehner said there had been “no substantive progress” in a budget-deficit showdown that may throw Canada’s biggest trade partner into recession. The loonie earlier approached a three-week high versus the U.S. dollar before erasing gains as data showed exports fell faster than imports.