Canada's Dollar Weakens


Canada's dollar declined for a fifth day, its longest losing streak since January, as prices of the nation's commodity exports declined.

The Canadian dollar has weakened 1.1 percent since reaching a two-month high on May 21. Crude oil fell to a one-week low on concern that record fuel prices will cut consumption at the height of the U.S. driving season. Gold, copper and zinc also fell. Commodities such as gold and crude oil account for 54 percent of Canadian exports. Alberta's oil sands hold the largest crude deposits outside the Middle East.

Canada's dollar fell 0.1 percent to 99.44 cents per U.S. dollar at 8:44 a.m. in Toronto, from 99.38 cents yesterday. One Canadian dollar buys $1.0058. The last time the currency declined for five days was in the period through Jan. 11.

Canada's economic growth probably slowed last quarter, expanding at a 0.4 percent annualized rate from 0.8 percent the previous period, according to the median forecast of economists in a Bloomberg News survey. Statistics Canada will release the data on May 30.

The loonie, as the currency is known because of the image of the bird on the one-dollar coin, has traded close to parity with its U.S. counterpart this year after climbing 17 percent in 2007. It touched a 2008 low of C$1.0379 on Jan. 22 and as strong as 97.12 cents per U.S. dollar on Feb. 28.

Crude oil for July delivery dropped 1.8 percent to $126.58 a barrel. Gold for immediate delivery was down $15.60 to $892.30 an ounce. Copper for delivery in three months fell $100, or 1.2 percent, to $8,090 a ton. Zinc decreased $41 to $2,110 a ton.


TradingEconomics.com, Bloomberg
5/28/2008 6:42:34 AM