TORONTO: The Canadian dollar hit a two-month low against its US counterpart on Friday after data showed US job growth unexpectedly accelerated in October, dodging any significant impact from a government shutdown, and as Canadian employment figures came in close to expectations.
"Canada was as expected, and the US number was much stronger than expected, so the market is going to take its cue off of the US report today," said Doug Porter, chief economist at BMO Capital Markets. Canada's economy added 13,200 jobs in October while US employers added 204,000 new jobs to their payrolls, fanning speculation the US Federal Reserve could begin to withdraw its massive monetary stimulus sooner than expected.
"The US number at the margin kept the taper discussion alive," Royal Bank of Canada chief economist Craig Wright. The US payroll data had a broad impact on financial markets, boosting the greenback against a range of currencies and pushing stocks and bonds lower.
The Canadian dollar weakened to C$1.0504 to the US dollar, or 95.20 US cents, after the data was released, its weakest level since Sept. 6. It had closed the North American session on Thursday changing hands at C$1.0461, or 95.59 US cents.
The loonie, as Canada's currency is colloquially known, is on track for a weekly decline of around 0.6 percent.
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