The Canadian dollar slumped on Thursday as a consequence of the nation's top banker sating on Wednesday that the institution he spearheads is likely to preserve borrowing costs' rate as is in anticipation of increased growth in the globe's 11th-largest economy, Bloomberg reports.
The loonie also was pinched by prospects of chairman Ben Bernanke with the U.S. Federal Reserve poised to note during his second day of Congressional testimony on Capitol Hill that asset purchasing programs that seek to boost the globe's largest economy are correlated with economic growth.
"That's the default position at the moment; if there's no news the (U.S.) dollar grinds up," currency strategy global head Adam Cole with Royal Bank of Canada told Reuters on Thursday. "And the Canadian dollar has suffered least, as it generally does when markets are dollar-directional."
But the Canadian dollar's poor performance received a measure of salve from wholesale sales data from this past May, which advanced more rapidly than any time during the past two-plus years.
The monetary unit of Canada did mark advances against the Japanese yen on Thursday, according to Reuters.
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