Canada’s dollar traded in the narrowest range since April as the U.S. government shutdown reached a third day, raising concern the political gridlock will slow growth in the nation’s largest trading partner.
The currency touched almost a two-week low against its U.S. counterpart amid speculation the standoff would merge with the fight about raising the U.S. debt ceiling later this month. It fell versus a majority of its most-traded peers, along with the U.S. dollar.
“The market is looking for inspiration here, it’s in a wait-and-see mode,” said John Curran, a senior vice president at CanadianForex Ltd., an online foreign exchange dealer, said by phone from Toronto. “It’s a lose-lose situation. If they resolve this, people would start buying the U.S. dollar. If this drags on, the Canadian will weaken too.”
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