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Canadian Dollar’s January Loss Biggest in 42 Years Amid Turmoil

Canada’s dollar had its worst start to a year since at least 1972 amid speculation the central bank may favor cutting interest rates and as a selloff in emerging markets sent investors to the haven of the U.S. dollar.

The currency weakened past C$1.12 to the greenback for the first time since July 2009 as data showing a fifth month of economic growth failed to stem speculation the Bank of Canada will ease monetary policy. The loonie, as the currency is called, has lost 1.5 percent since the central bank reduced its inflation forecast last week and cited the currency’s strength as a headwind to non-commodity exports.