Canada Dollar Touches Lowest in 3 Years on Rate-Cut Wagers
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The Canadian dollar weakened to the lowest level in three years as traders increased bets the Bank of Canada will signal the possibility of a rate cut at today’s policy announcement.
The currency fell for the fourth straight day after better-than-forecast employment data in the U.S. boosted bets the Federal Reserve will slow the monetary stimulus that has tended to weaken the greenback. The yield on bankers’ acceptance contracts, a gauge of short-term interest rate expectations, fell to a seven-month low before Bank of Canada policy makers are predicted to keep the benchmark rate at 1 percent.