Loonie’s Best Gain in 59 Years Risks Backfiring

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Steven Barrow three months ago predicted Canada’s dollar would weaken 11 percent against the greenback from its four-year low of C$1.3064 as policy makers considered printing money to kick-start the world’s eighth- largest economy.

Barrow, Standard Bank Plc’s head of research for Group of 10 currencies in London, now says the loonie will strengthen to parity with the U.S.’s legal tender within a year amid increased demand for oil and other Canadian commodities. After closing yesterday just shy of C$1.10, it weakened 1.2 percent to C$1.1108 today after a government report showed employers eliminated more jobs in May than economists forecast.

From Bloomberg News.