Canadian Currency Touches 4-Year Low Before BanK Meets

The Canadian dollar weakened to C$1.10 for the first time in more than four years amid speculation the U.S. Federal Reserve will slow its monetary stimulus as the Bank of Canada signals more may be on the way.

The currency sank against most major peers before a central-bank rate decision tomorrow that will follow weaker-than-forecast economic reports this month. The bank may signal in a policy statement it favors lower interest rates, only three months after dropping a bias toward higher rates. The Fed will keep reducing monthly bond purchases it makes to spur economic growth, according to economists in a Bloomberg survey.