Saturday, 02 June 2012 03:07
TORONTO: Canada's dollar hit its weakest level in six months on Friday and longer-term bond yields tumbled to record lows as investors fled riskier trades after weak North American economic data added to worries about stumbling global growth.
Canada's dollar touched a low of C$1.0443 against the greenback, or 95.76 US cents, its lowest level since late November after a disappointing US jobs report.
The data, which showed jobs growth in May at its weakest in a year, raised worries that the US economy is not immune to weakness in Europe, where Spain is struggling to support its banks, or to slower growth in China.
The commodity-linked currency was also hurt by data that showed the Canadian economy grew less in the first quarter than the Bank of Canada had expected.
Following Friday's data, traders raised bets of a Bank of Canada interest rate cut by the end of the year.
"The Bank of Canada ...