Canada’s dollar slid to the lowest in almost four weeks as commodities fell for a fourth day and stocks sank amid bets the Federal Reserve may slow quantitative-easing stimulus in the nation’s biggest trade partner.
The currency extended losses, falling against most major peers, after a report showed building permits dropped in June for the first time this year. The discount applied to Canadian heavy oil, the nation’s biggest export, was almost the biggest in three months. Canada’s payrolls grew by 10,000 jobs last month after losing positions in June, data due Aug. 9 are forecast to show.
“For dollar-Canada, the bigger driver at the moment is QE-tapering expectations,” said Greg T. Moore, a currency strategist at Toronto-Dominion Bank in Toronto. “Our expectations are in September. The Canadian employment report is the biggest thing on the calendar and could drive the Canadian dollar in either direction.”
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