The Canadian dollar weakened from an almost six-week high against its U.S. counterpart as crude oil, the country’s biggest export, posted its biggest drop in more than four months.
The Canadian currency fell against the majority of its 16- most traded peers as a private report showed companies in the U.S. added fewer jobs than forecast in March, prompting speculation the government figures may trail projections when they are released April 5. A separate report will show Canada created 6,500 jobs in March after adding 50,700 the month before, according to a Bloomberg survey of 24 economists. U.S stocks fell the most in a month.
“Equities are getting killed, commodities are being sold off, and everyone is wondering why the Canadian dollar is not weaker than it is,” Darcy Browne, managing director of currencies at Canadian Imperial Bank of Commerce’s CIBC World Markets unit, said by phone from Toronto. “You have the key employment data coming on Friday, so I don’t think anyone wants to push it too far from here, especially two days ahead of potentially the dynamic in the market changing.”
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