The Canadian dollar fell against its U.S. counterpart after Stephen Poloz, head of the nation’s export-financing agency, was named to lead the Bank of Canada amid concern he may be more amenable to easier monetary policy than the official he will succeed.
The currency strengthened earlier versus most of its major counterparts as stimulus measures by the European Central Bank and Federal Reserve boosted demand for higher-yielding currencies and stocks and commodities rose. Canada’s central bank announced Poloz’s appointment, effective June 3, in a statement today from Ottawa.
“The consensus view on the street is that he’s probably a pretty dovish candidate that will probably lead to easier monetary policy than we otherwise would have expected,” Jamie Price, director of fixed income at Macquarie Private Wealth in Toronto, said in an interview.
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