Canadian Dollar Declines

Canada's dollar fell for a sixth day, its longest slide since March, as the economy unexpectedly lost jobs in December, reinforcing suspicions that the U.S. slowdown has hurt the economy., Bloomberg 1/11/2008 8:38:37 AM

The currency, the second-best performer against the U.S. dollar last year, trailing Brazil's real, has declined the most this month among the 16 most-actively traded currencies.

The currency fell 0.9 percent to C$1.0192 per U.S. dollar at 10:57 a.m. in Toronto from C$1.0102 yesterday.

The currency's deteriorating outlook comes only three months after it traded one-for-one with the U.S. dollar for the first time in three decades as prices of the nation's commodity exports soared.

The currency has fallen more than 12.5 percent since touching 90.58 Canadian cents per U.S. dollar on Nov. 7, reflecting effects of a U.S. economic slowdown. Canada ships about 80 percent of its exports to the U.S.

The economy lost 18,700 jobs last month after creating 42,600 positions in November, Statistics Canada said today. The median forecast of 26 economists surveyed by Bloomberg was for 15,000 new jobs.

The currency remained lower after a government showed Canada's trade surplus widened to C$3.7 billion in November from the previous month, beating the median forecast of $3.3 billion of 25 economists Bloomberg surveyed.

Canadian Dollar Declines