Canada Dollar Falls to 2-Month Low as CPI Raises Rate-Cut Bets
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The Canadian dollar declined to a two-month low versus its U.S. counterpart after the rate of inflation slowed in April to the least in more than three years, bolstering the case for relaxing monetary policy.
The dollar fell against most of its 16 most-traded peers after Statistics Canada said consumer prices rose 0.4 percent from a year ago, down from a 1 percent gain the prior month. The slowest pace of inflation since October 2009 is sparking speculation incoming Bank of Canada Governor Stephen Poloz may remove Mark Carney’s bias toward raising rates.