TORONTO: The Canadian dollar weakened against all the other Group of 10 currencies on Friday as domestic data showed a surprise decline in employment, spurring investors to reduce bets on Bank of Canada interest rate hikes this year.
The loonie was trading 0.2 percent lower at 1.3690 to the US dollar, or 72.99 US cents, after touching its weakest intraday level since April 29 at 1.3710. It was the only G10 currency to lose ground against the greenback.
For the week, the loonie was down 0.7 percent, after four straight weekly gains.
Canada’s economy lost 17,700 jobs in April and the unemployment rate rose to a six-month high of 6.9 percent, indicating continued weakness in a labor market that has struggled in the face trade uncertainty. Analysts had predicted a jobs gain of 15,000.
“The Canadian dollar is ratcheting lower as traders pull back on monetary tightening expectations previously incorporated in rate curves, and differentials tilt in the greenback’s favour,” Karl Schamotta, chief market strategist at Corpay, said in a note.
“We think signs of stability will emerge in the coming months as trade uncertainties are reduced and downward momentum in housing markets begins to slow, but today’s data points to a long and difficult road ahead for the Canadian economy.”
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