Weaker-than-anticipated retail sales prompted the Canadian dollar to continue losing value during the Wednesday trade session, Bloomberg reports.
The loonie also was on edge early Wednesday, prior to the testimony of governor Ben Bernanke with the U.S. Federal Reserve, who is scheduled to appear before congress to discuss the outlook for the U.S. economy. Speculation has been mounting that the Fed chief will signal the monetary easing policies of the top trade partner to Canada soon will taper.
"There is concern about the household sector, not least of which is concerns about the housing market and how rapidly that's likely to slow," Group of 10 currency strategy head Adam Cole with Royal Bank of Canada in London told the news source on Wednesday. "If that starts to fall away, then it's a reason to make the currency vulnerable."
Early during the Wednesday trade session the Canadian dollar plunged to its lowest rate since March 7 against its southerly rival.
The tepid economic data about retail sales in Canada does not help cast a strong outlook for the nation hosting the world's 11th-biggest economy, according to Reuters.
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