Canada Dollar Touches Almost 2-Year Low After Breaching Levels

The Canadian dollar weakened beyond C$1.05 per U.S. dollar to reach its lowest point in almost two years on bets the U.S. currency will strengthen when the Federal Reserve ends monetary stimulus.

The loonie, as the currency is nicknamed, depreciated against the majority of its 16 most-traded peers after Fed Chairman Ben S. Bernanke’s said last week policy makers may begin reducing $85 billion of monthly bond purchases this year if the economy achieves the central bank’s objectives. Monetary stimulus tends to devalue a currency. Canada’s dollar pared its losses after Fed Bank of Dallas President Richard Fisher said investors shouldn’t overreact to Bernanke’s statement.