Canada's dollar weakened against the greenback on Friday after a dismal report on the US labour market raised concerns that a US economic recovery is further away than anticipated. Stock markets around the world fell and oil slumped after US data showed employment growth had ground to a halt in June.
"That big shock coming out of the US payrolls, certainly had a bigger impact on the Canadian dollar than the Canadian jobs numbers did," said David Watt, senior currency strategist at RBC Capital Markets. "The payrolls number probably had a more jarring impact on the Canadian dollar than any other currency pair."
Canadian employment data, released ahead of the American report showed a bigger-than-expected job gains of 28,400 in June. The Canadian dollar had strengthened after the domestic release, but it immediately dropped to a session low, falling as far as C$0.9665 to the US dollar, or $1.035, following the US report. The currency finished the day at C$0.9607 to the US dollar, or $1.0409, down from Thursday's finish at C$0.9587.