Canada’s dollar declined to almost a three-month low and 10-year bond yields sank to the least in a year as the nation’s employers added fewer jobs in July than forecast, increasing concern the economy is faltering.
The currency weakened for a second day versus the U.S. dollar after Statistics Canada said employment increased by 200 jobs, versus a 20,000 gain projected by economists surveyed by Bloomberg News. The unemployment rate fell to 7 percent, from 7.1 percent, as people left the labor market.
The loonie’s decline “is an appropriate response,” Greg Anderson, head of global foreign-exchange strategy at Bank of Montreal, said in a phone interview. “Seeing full-time job loss, and people giving up and leaving the labor force, is disappointing.”