Canada’s dollar was little changed at almost a five-month high versus its U.S. counterpart after fluctuating as data showed the nation’s economy grew less than forecast in April.
The currency fell versus 12 of its 16 major peers. The report on gross domestic product supported comments from the Bank of Canada that a gain in inflation is transitory rather than a sign the economy is heating up, damping bets the central bank might signal a need for higher interest rates. Data earlier this month showed consumer prices climbed in May more than forecast.
“Given the increasing signs of mounting pressure on the Canadian dollar, the GDP number doesn’t necessarily mean a meaningful move lower,” said Omer Esiner, chief market analyst in Washington, D.C., at Commonwealth Foreign Exchange Inc., a currency brokerage.
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