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Canadian dollar slips to lowest level since 2020 as economic gloom sets in

The Canadian dollar fell to its lowest level in almost two years on Friday, as investors around the world surveyed the worsening outlook for the economy and ran toward the safety of the U.S. dollar.

The Canadian dollar was changing hands for as little as 75.15 cents US at one point on Friday morning. That’s the lowest level for the currency since October 2020.

The loonie was off by about half a cent from Thursday’s close, just the latest down day in a stretch of them for Canada’s currency. The loonie fell by more than a cent on Tuesday when data out of the U.S. showed the country’s core inflation rate is still going in the wrong direction: up.

One country’s currency doesn’t often plunge because of economic data coming out of another, but that’s not the case right now because of how big a problem inflation is.

Stubbornly high inflation in the U.S. increases the odds that the country’s central bank will have to raise its interest…

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