Canada's dollar retreated for a third day as the administration of its biggest trading partner stayed shut amid a political impasse about budgeting and surging government borrowing authority. The currency touched a four-week low as crude oil, the nation’s biggest export, pulled back and gold sagged down for a second day. A report yesterday showed Canada’s exchange deficit widened in August even as exports to the U.S. that touched the topmost level since the end of 2011. Jobs growth slowed last month, according to a Bloomberg survey of economists before the government report on Oct. 11. Bond Trade Canada’s benchmark 10-year government bonds fell, with yields rising one basis point, or 0.01 percentage point, to 2.58 percent. The 1.5 percent securities maturing in June 2023 fell 10 cents to C$90.88. Fed Chief The Bank of Canada said it welcomed Obama’s nomination of Janet Yellen’s to lead the Federal Reserve. “The bank looks forward to continuing the close working relationship it has enjoyed with Ms. Yellen and her colleagues,” the Ottawa-based central bank said in a statement on its website. “The bank has been honoured to work with Fed Chairman Ben Bernanke for the past eight years, and we wish him every success in his future endeavours.”. Most Fed policy makers said the central bank was likely to reduce the pace of its bond purchases this year, even as they unexpectedly refrained from such a move in September, minutes of their last meeting show. The Canadian dollar has lost 2.3 percent this year against nine developed-market peers tracked by the Bloomberg Correlation-Weighted Index. The U.S. dollar is up 2.8 percent, while the Australian currency fell 7.5 percent.
