Canada’s dollar reached the strongest level in a week versus its U.S. peer as the nation’s current-account deficit narrowed more than economists forecast in the first quarter on rising commodity exports.
The currency erased earlier losses against the greenback as a report showed the U.S. economy expanded less than estimated in the first quarter. Canada’s dollar trimmed a monthly decline versus the U.S. currency as crude oil, the nation’s largest export, rebounded from a four-week low.
“It’s really about a soft U.S. dollar,” said Adam Button, a currency analyst at forexlive.com in Montreal. “That’s spilled over to the Canadian dollar, and that’s just sidelined today. At the same time, it comes after a few weeks of extended weakness for the Canadian dollar, so it’s no surprise to see a snap-back. May has essentially been a terrible month for the Canadian dollar.”
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