The Canadian dollar fell near its lowest point in three weeks versus its U.S. counterpart as traders trim bets monetary easing by the Bank of Japan (8301) will weaken the yen.
The currency declined against the majority of its most traded peers as BOJ officials began a two-day policy meeting under pressure from the newly-elected government to introduce monetary stimulus to weaken the yen. Last month’s election of Prime Minister Shinzo Abe, who vowed to stimulate exports by depreciating the currency, has driven the yen to its lowest point against the Canadian dollar since 2010.
“Generally the Canadian dollar is weaker,” said Eimear Daly, a currency market analyst at Monex Europe Ltd. by phone from London. “It probably is weakening off because the Bank of Japan and expectations. We do have a stronger dollar because the market is pricing in that we may be slightly disappointed from what we see.”
The loonie, as the Canadian dollar is known for the image of the waterfowl on the C$1 coin, fell 0.1 percent to 99.26 cents per U.S. dollat at 8:27 a.m. in Toronto. One loonie buys $1.0075. The loonie fell 0.6 percent to 90.28 yen.
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