Canadian Dollar Falls to Almost Lowest Since 2009 on BOC ViewsAri Altstedter
The Canadian dollar fell to almost its lowest point in four and a half years amid speculation the central bank may cut interest rates to stimulate economic growth.
The currency weakened against all its major peers after Bank of Canada Governor Stephen Poloz said yesterday he can’t rule out an interest-rate cut if the economy worsens, following a speech where he blamed harsh winter weather for mainly sparking weaker-than-forecast growth. The currency’s 5 percent decline this year against the U.S. dollar has made it the worst performer among major currencies as investors speculated policy makers will do more.
The loonie, as the Canadian dollar is known, fell 0.3 percent to C$1.1173 per U.S. dollar at 8:43 a.m. in Toronto, touching the lowest since Jan. 31 when it was the weakest since July 2009. One loonie buys 89.50 U.S. cents.
Canadian wholesale sales climbed in January as higher receipts from computer and communications equipment countered declines in motor vehicles and parts, Statistics Canada said today in Ottawa. Sales rose 0.8 percent to C$50.0 billion ($44.7 billion), matching the 0.8 percent increase that was the median forecast in a Bloomberg survey with 13 responses.