Loonie Rallies After Weak U.S. Jobs Points to Fed on Hold

  • Canadian dollar gained as much as 0.8 percent after data
  • Currency has rallied 6.5% this year as commodities rebound

The Canadian dollar surged against the greenback after weaker than expected U.S. jobs data raised expectations the U.S. Federal Reserve would delay an interest-rate increase.

The loonie gained as much as 0.79 percent to C$1.2978 after nonfarm payrolls rose 38,000 in May, according to a U.S. Labor Department report. Economists surveyed by Bloomberg forecast an increase of 160,000 jobs. The Canadian dollar traded at C$1.2977 at 8:54 a.m. in Toronto.

Canada’s currency has rallied 6.54 percent against the U.S. dollar this year to become one of the top performers among its developed peers as the price of oil has bounced back.

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