Canada’s Dollar Falls on Weak GDP

Nation’s economy unexpectedly contracts in February.

Canada’s dollar fell against its U.S. counterpart after the nation’s gross domestic product unexpectedly shrank in February, weakening the argument for higher borrowing costs.

The currency extended losses after a report showed the economy was hurt by mining shutdowns and the first drop in manufacturing in six months. The Canadian dollar advanced against all of its major counterparts except the yen last week on speculation the Bank of Canada will become the first among Group of Seven peers to raise borrowing costs.

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