Canada’s dollar weakened versus all of its 16 most-traded counterparts except the South African rand as commodities including oil, the nation’s biggest export, dropped for a third day.
The currency traded at almost a two-week low versus the U.S. dollar amid speculation an Aug. 9 report will say Canada’s economy failed to create as many jobs in July as economists forecast after data last week showed U.S. payrolls grew less than projected. Canadian government bonds fell, pushing 10-year (GCAN10YR) yields almost to a two-year high.
“We’ve lost our advantage because commodity prices are much lower, and that’s basically being reflected in the Canadian dollar,” said Aaron Fennell, a futures specialist at Bank of Nova Scotia’s Scotia McLeod unit, by phone from Toronto.
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