CANADA FX-C$ falls to 3-wk low as GDP data disappoints
TORONTO, June 30 (Reuters) - The Canadian dollar hit its lowest level in three weeks against the U.S. dollar on Wednesday as expectations for higher interest rates were pared back further after data showed the Canadian economy stalled unexpectedly in April.
The Canadian dollar CAD=D4 touched C$1.0612 to the U.S. dollar, or 94.23 U.S. cents, at midmorning, its lowest since June 7.
Currencies usually strengthen as interest rates rise as higher rates attract capital flows. Expectations for a Bank of Canada rate rise, as measured by yields on overnight index swaps,dropped below 50 percent on Wednesday from around 80 percent just last week.
Government data showed real gross domestic product in Canada was flat in April after seven straight months of expansion, disappointing market expectations for 0.2 percent growth. [ID:nN30434455] (Reporting by Ka Yan Ng; editing by Peter Galloway)
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