The Canadian dollar weakened for a second day after a report showed U.S. retail sales increased for a fourth straight month, adding to signs Canada’s economy is falling behind its biggest trading partner.
The currency fell after Canada said last week the economy had lost 39,400 jobs in July compared with the 10,000 new positions expected by a Bloomberg survey of 23 economists. The Commerce Department reported today U.S. retail sales increased 0.2 percent in July.
“The market for the time being is a little wary about the Canadian economy, based on the job prints, and I think we’re going to end up having a higher dollar/weaker Canada in the near term,” said Darcy Browne, managing director of currencies at Canadian Imperial Bank of Commerce’s CIBC World Markets unit.
The loonie, as the Canadian dollar is known, depreciated 0.3 percent to C$1.0334 per U.S. dollar at 8:34 a.m. in Toronto. One loonie buys 96.77 U.S. cents.
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