The Loonie extended its losses versus its U.S. counterpart after a report showed CanadaÃ¢â‚¬â„¢s economy unexpectedly contracted in May by the most in two years as production in the mining and oil and gas sector declined.
CanadaÃ¢â‚¬â„¢s currency fell versus a majority of its major counterparts as a report showed the U.S. economy grew less than forecast in the second quarter, after almost coming to a halt at the start of the year, as consumers retrenched. Crude oil, CanadaÃ¢â‚¬â„¢s largest export and global equities, traditional drivers of CanadaÃ¢â‚¬â„¢s dollar, declined.
Ã¢â‚¬Å“The fact that Canada and GDP werenÃ¢â‚¬â„¢t great just took a toll on the Canadian dollar,Ã¢â‚¬Â said Brian Kim, a currency strategist in Stamford, Connecticut, at Royal Bank of Scotland Group Plc. Ã¢â‚¬Å“Disappointing GDPs in North America in general are not helping the currency.
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