The Canadian dollar declined for a fifth time in six days versus its U.S. peer as a regional Federal Reserve president said the central bank may begin slowing monthly bond-buying as the labor market strengthens.
The currency approached an almost three-week low as San Francisco Fed President John Williams said the central bank could begin tapering its $85 billion in monthly bond-buying program known as quantitative easing “as early as this summer.” Canada’s dollar headed for a second weekly loss as the price for insurance against declines versus its U.S. counterpart traded at its highest point in eight months.
“If they stop printing money, then it’s positive for the U.S. dollar,” said Darcy Browne, managing director of currencies at Canadian Imperial Bank of Commerce’s CIBC World Markets unit, by phone from Toronto. “It’s more or less Fed officials preparing the market for the inevitable, which is when it will come to an end.”
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