Canada’s dollar fell from the strongest in two weeks against its U.S. counterpart as investor risk appetite shrank after the European Central Bank signaled concern the euro’s strength may hurt its 17-nation region.
The currency almost reached parity with the U.S. dollar for the first time in four days before a report tomorrow forecast to show Canada’s jobs growth slowed. Oil, the nation’s biggest export, fell after weaker U.S. economic data. The euro and the Australian and New Zealand dollars sank versus the greenback as ECB President Mario Draghi said the euro’s gains may hamper efforts to pull the currency bloc’s economy out of recession.
“Initially the euro was just moving in isolation and everything else looked very robust, and then more recently it’s spilled into Aussie-dollar weakness, kiwi weakness and Canada- dollar weakness,” Adam Cole, head of global currency strategy at Royal Bank of Canada, said by phone from London. “I don’t think it’s Canada-dollar-specific, but it’s rather the rest of the market being polluted by the move in euro.”
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