Canadian Dollar Falls


The Canadian dollar fell for a second day after a report showed new-home starts declined last month more than analysts forecast.

Canada's dollar has depreciated against 13 of the 16 most- active currencies this year, weakening 1.4 percent versus its U.S. counterpart during the period. The nation's central bank cut borrowing costs a half-percentage point to 3 percent on April 22 as the economy in the U.S. slowed. Canada ships about 80 percent of its exports to the U.S.

The Canadian currency fell 0.4 percent to C$1.0128 per U.S. dollar at 8:52 a.m. in Toronto, from C$1.0093 yesterday. One Canadian dollar buys 98.70 U.S. cents.

The April total of 213,900 new-home starts on an annualized basis compares with a revised 243,000 in March, Canada Mortgage and Housing Corp. said today in Ottawa. The median forecast in a Bloomberg News survey of 24 economists was for 225,000.

Employers probably hired 10,000 workers in April, down from 14,600 in March, according to the median forecast of 24 economists in a separate Bloomberg survey. The data will be released tomorrow.


TradingEconomics.com, Bloomberg
5/8/2008 6:58:30 AM