The Loonie extended its losses versus its U.S. counterpart after a report showed Canada’s economy unexpectedly contracted in May by the most in two years as production in the mining and oil and gas sector declined.
Canada’s currency fell versus a majority of its major counterparts as a report showed the U.S. economy grew less than forecast in the second quarter, after almost coming to a halt at the start of the year, as consumers retrenched. Crude oil, Canada’s largest export and global equities, traditional drivers of Canada’s dollar, declined.
“The fact that Canada and GDP weren’t great just took a toll on the Canadian dollar,†said Brian Kim, a currency strategist in Stamford, Connecticut, at Royal Bank of Scotland Group Plc. “Disappointing GDPs in North America in general are not helping the currency.
