Canada’s dollar dropped for a second day as investors wrapped up business heading into year-end. “The Canadian dollar is consolidating,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman & Co. in New York. “People aren’t doing business unless they have to.” The Canadian dollar depreciated 0.5 percent to C$1.2218 per U.S. dollar at 3:52 p.m. in Toronto, from C$1.2153 yesterday. One Canadian dollar buys 81.85 U.S. cents. The currency, known as the loonie, dropped 0.2 percent this week. It will decline to C$1.34 by the second quarter of next year, said Chandler. Canada’s financial markets were closed today for the Boxing Day holiday. The yield on the two-year government bond was at 1.20 percent. The price of the 2.75 percent security due in December 2010 was C$102.93.

Source