Canada's Dollar Falls After U.S. Job Report, Trichet's Comments

Canada's dollar fell after a U.S. government report showed the unemployment rate in the world's largest economy was unchanged and the European Central Bank signaled it may not raise interest rates again this year.

The Canadian dollar weakened versus 11 of the 16 most- traded currencies and has declined 0.9 percent this week. ECB President Jean-Claude Trichet said today's quarter-percentage point interest-rate increase to a seven-year high of 4.25 percent will help the bank bring inflation back below 2 percent.

Canada's dollar declined 0.6 percent to C$1.0189 per U.S. dollar at 9:18 a.m. in Toronto, from C$1.0124 yesterday. One Canadian dollar buys 98.15 U.S. cents.

The loonie, as the currency is known because of the image of the bird on the one-dollar coin, has traded near 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 a high of 97.12 cents per U.S. dollar on Feb. 28.

Canada, Bloomberg
7/3/2008 7:08:02 AM