BS: Canadian Dollar Declines for Third Week as Risk Aversion Rises
The Canadian dollar weakened for a third week, the longest losing streak versus its U.S. counterpart since May, on concern demand for natural resources will decline as investors question global-growth prospects.
The currency fluctuated today after a report showed third- quarter growth in the U.S., the nation’s biggest trading partner, topped analysts’ forecasts. Bank of Canada Governor Mark Carney said on Oct. 24 that the need for higher interest rates has become “less imminent,” a day after strengthening the case for tightening monetary policy.
“The market got whipped around this week on Carney’s comments and it’s finding it hard to find a positive direction,” Shaun Osborne, chief currency strategist at Toronto-Dominion Bank, said in a phone interview from Toronto.
The loonie, as the currency is known for the aquatic bird on the C$1 coin, was little changed at 99.44 cents per U.S. dollar at 9:26 a.m. in Toronto. One Canadian dollar buys $1.0056.
Gross domestic product, the value of all goods and services produced in the U.S., rose at a 2 percent annual rate after climbing 1.3 percent in the prior quarter, Commerce Department figures showed today in Washington. The median forecast of 86 economists surveyed by Bloomberg called for a 1.8 percent gain.
To contact the reporter on this story: Katia Dmitrieva in Toronto at edmitrieva1@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
