Canada Dollar Drops Most in 5 Weeks on Outlook for Fed Tapering
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The Canadian dollar fell the most in five weeks on speculation a projected drop in the U.S. jobless rate last month may bolster the case for the Federal Reserve to slow monetary stimulus in Canada’s biggest trade partner.
The currency weakened as data showed applications for jobless benefits in the U.S. unexpectedly fell to a five-year low and manufacturing rose. The U.S. dollar gained versus 16 major peers. Data due tomorrow are forecast to show the U.S. jobless rate declined to 7.5 percent last month, from 7.6 percent, according to a Bloomberg survey. Canada reported yesterday its economy grew more slowly in May than forecast.