The Canadian dollar rose from a two-month low on speculation sluggish economic growth will prompt the Federal Reserve to signal a delay in slowing monetary stimulus that tends to devalue the U.S. dollar.
The currency extended gains versus the greenback after an ADP Research Institute report showed U.S. companies added fewer workers than projected this month. Canada’s dollar posted its biggest weekly drop in four months last week after the Bank of Canada lowered economic growth estimates and removed language about the need for higher interest rates it had kept in every policy statement for more than a year.
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