Canadian Dollar Heads for Weekly Decline on US Economy

The Canadian dollar fell against most major currencies and headed for the fourth straight weekly decline against its US counterpart as the sings of the economic slowdown in the US, the biggest Canada’s trading partner, reduced appeal of the currency.

Crude oil, the main Canadian export, fluctuated today, trading near $100.33. The yield on the government two-year securities fell two basis points to 1.50 percent. The MSCI World Index of shares gained as much as 1.1 percent.

The Bank of Canada will auction $700 million ($716 million) of real-return bonds on June 1. The central bank’s policy makers will meet on May 31 to set the interest rates. Analysts forecast that the main lending rate (overnight rate) will remain at 1 percent.

USD/CAD traded near its opening level of 0.9772 as of 18:55 GMT today after rising to 0.9796 and falling to 0.9751. EUR/CAD jumped to 1.3950 from 1.3825. Meanwhile, CAD/JPY dropped to 82.69 from 83.11.

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