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Canada’s economic recovery is lagging so far behind the U.S. that even a rebound in crude prices is failing to boost the nation’s currency.

The four-week correlation between the Canadian dollar and crude fell to an 18-month low last week. With oil surging 8 per cent in August, the loonie is up just 0.5 per cent, trailing other commodity-linked currencies such as the Norway’s krone and the Mexico’s peso.

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Canada’s relative economic weakness, highlighted Aug. 5 when jobs data showed America’s economy continues to gain traction while Canada’s slips, has overtaken oil as the major driver for the loonie. Yet the currency’s uncoupling from crude may prove a blessing for Bank of Canada Governor Stephen Poloz, who is counting on non-energy exporters to spearhead the country’s economic comeback.

“The market’s finally turning its attention away from that tiring story line, and other drivers of the Canadian dollar are stepping into the spotlight,” said Bipan Rai, senior foreign-exchange and macro strategist in Toronto at Canadian Imperial Bank of Commerce. He expects the loonie to weaken to $1.35 per dollar by year-end, from $1.2936 as of 8:38 a.m. in Toronto. “Traders are taking a more macro-focused approach to the Canadian dollar.”