Canada’s dollar gained to the strongest level in more than six weeks after the economy added more jobs than forecast in March, rebounding from a decline the previous month, and the unemployment rate unexpectedly fell.
The currency, called the loonie, rose versus 10 of its 16 major peers as employment in the U.S., Canada’s biggest trade partner, grew less than projected. The loonie has been the biggest loser this year among major currencies on bets slowing growth would lead the Bank of Canada to wait longer than the Federal Reserve to raise interest rates. The bank meets April 16. Governor Stephen Poloz said March 18 a rate cut might be possible if the economy worsens.
The loonie, nicknamed for the image of the aquatic bird on the C$1 coin, gained 0.5 percent to C$1.0981 per U.S. dollar at 5 p.m. in Toronto. It was the strongest closing level since Feb. 18. The currency gained for a second week, appreciating 0.7 percent. One loonie buys 91.07 U.S. cents.
Canada’s government bonds rose, pushing the yield on the benchmark 10-year security down the most in three weeks. It fell as much as six basis points, the biggest intraday drop since March 13, to 2.49 percent. The price of the 2.5 percent debt due in June 2024 increased 49 cents to C$100.10.
The Canadian dollar has declined 3.3 percent this year against its U.S. counterpart, the worst performance among 16 major peers. The loonie has fallen 4 percent this year in a basket of 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, also the biggest loss. The U.S. dollar declined 0.4 percent, and the euro lost 0.7 percent.
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