Canada Dollar Weakens Amid IMF Call to Maintain Interest Rates
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The Canadian dollar weakened to the lowest level in more than a week versus its U.S. peer as the International Monetary Fund said the Bank of Canada should refrain from raising interest rates until the end of next year to help fuel growth.
Canada’s currency declined against the majority of its 16 most-traded counterparts as negotiations in Washington over the so-called fiscal cliff of tax increases and spending cuts set to start in January remained unresolved. The Canadian dollar weakened for a second day versus the greenback after a technical measure indicated its recent rally may have been too far, too fast.