The Canadian dollar gained the most in almost a year against its U.S. peer as a weaker-than-forecast reading on American manufacturing damped speculation the Federal Reserve will reduce stimulus.
Canada’s currency advanced after a monthly loss in May that saw it reach its lowest point in a year before jobs data this week projected to show jobless rates held steady in both nations. It rose as stronger-than-forecast readings on manufacturing in Europe boosted investors’ appetite for riskier assets. Canada’s dollar extended gains after a Fed official said policy makers are committed to record stimulus even as they voice different views on tapering.
“We’re seeing a stampede out of U.S. dollars across the board,” Adam Button, a currency analyst at Forexlive.com in Montreal, said in a telephone interview. “The last month of trading has been predicated on the idea that the U.S. was gathering strength. As the numbers come in, that’s no longer a sure thing, and patience has run out for Canadian dollar sellers.”
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