The Canadian dollar ended lower against the US dollar on Friday as Canada's June job report came in weaker than expected, persuading the market that the Bank of Canada will not raise interest rates next week.
Bond prices raced higher as the employment data dampened expectations for a Bank of Canada interest rate hike on Tuesday, while US June jobs figures were also lower than had been thought. The Canadian dollar closed at C$1.1143 to the US dollar, or 89.74 US cents, down from C$1.1112, or 89.99 US cents, at Thursday's North American close.
The currency struggled early as Statistics Canada said the labour market shed 4,600 jobs in June. Analysts had forecast a gain of 2,500. The unemployment rate remained at a 32-year low of 6.1 percent.
The numbers led nine of Canada's 14 primary securities dealers to predict that Canada's central bank will leave its key overnight rate unchanged at 4.25 percent next week, according to a Reuters poll. The Canadian dollar might have lost more ground but for a surprisingly weak US jobs report.