The Canadian dollar gained to the strongest level in a month versus its U.S. peer after economic growth rebounded to the fastest in almost three years in the second quarter, led by exports and spending on big-ticket items.
The currency advanced on the week as Canada’s growth has picked up along with the American economy, which expanded at a 4.2 percent annualized second-quarter pace, the Commerce Department said yesterday from Washington. Bank of Canada Governor Stephen Poloz has said it will take another two years to use up slack that built up in the world’s 11th largest economy. Policy makers meet Sept. 3.
“Even though the headline data came in stronger than the market was expecting, it wasn’t that much stronger that it’s going to cause the Canadian dollar to appreciate too much,” David Bradley, director of foreign exchange trading at Scotia Capital Inc., a unit of Bank of Nova Scotia, said by phone from Toronto. “We had a little bit of a move down to the lows we’ve seen recently” for the U.S. dollar, he said.
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