The Canadian dollar snapped a three-day winning streak as the slowing economy stoked worry that U.S.-led financial troubles will spill into Canada. The Bank of Canada lowered its growth forecast on Jan. 24 because of weak export demand from the U.S. and said it will probably reduce lending rates again this year. It cut the benchmark rate to 4 percent Jan. 22. Canada ships about 80 percent of its exports to the U.S.
The currency, known as the loonie after the image of the bird on its one-dollar coin, fell 1 percent to C$1.0030 per U.S. dollar at 12:39 p.m. in Toronto, from 99.33 Canadian cents yesterday. It was the biggest decline since Jan. 4. One Canadian dollar buys 99.70 U.S. cents.