Canada Dollar Falls to 1-Year Low as Bernanke Hints at Tapering

Canada’s dollar dropped to an almost one-year low versus its U.S. peer after Federal Reserve Chairman Ben S. Bernanke said monthly bond purchases may be reduced if the economy shows sustained growth.

The currency declined earlier after Canadian retail sales stagnated in March, boosting bets the Bank of Canada will reverse its bias to raise interest rates. It remained lower as the minutes of the Fed’s last meeting showed a number of officials were willing to taper bond buying as early as the next meeting on evidence of sustained growth. The so-called loonie fell against the majority of its 16 most-traded peers as oil, the nation’s largest export, dropped for a second day.