Canadian Dollar Falls to 7-Month Low as Retail Sales Unexpectedly Decline

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  • Canadian Dollar Falls to 7-Month Low
  • Retail Sales Unexpectedly Decline

The Canadian dollar fell to the weakest level since March after retail sales unexpectedly dropped in August while inflation accelerated last month at a slower-than-forecast pace.

The latest data add to concern about Canada’s economy. The Canadian dollar extends a drop triggered by Bank of Canada Governor Stephen Poloz saying earlier this week after a meeting on interest rates that officials “actively” discussed the possibility of adding more stimulus into the economy.

“So now we know why the BOC considered easing,” said Greg Anderson, global head of foreign-exchange strategy in New York at Bank of Montreal. “Economic growth in the third quarter doesn’t look as good as expected, inflation is below target and it’s unclear where an acceleration would come from.”

The loonie fell 0.8 percent to C$1.3331 per U.S. dollar as of 9:03 a.m. in Toronto, reaching the weakest level since March 16. The yield on the country’s two-year federal government bond fell for the fifth day to 0.51 percent, heading for the steepest weekly decline since June.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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