Canada’s currency was little changed against the greenback as equities fell in Europe and Asia on concerns the deepening recession will erode earnings and U.S. stock futures advanced in a rebound from yesterday’s sell-off. “In general, it’s really a question of equities for how the Canadian dollar is going to perform against the U.S. dollar on a daily basis,” said Dustin Reid, director of currency strategy at RBS Greenwich Capital Markets in Chicago. “That’s probably why you’re not seeing a material move today.” The Canadian dollar dropped 0.2 percent to C$1.2529 per U.S. dollar at 8:25 a.m. in Toronto, from C$1.2503 yesterday. One Canadian dollar buys 79.81 U.S. cents. Europe’s Dow Jones Stoxx 600 Index lost 1.5 percent and the MSCI Asia Pacific Index fell 1.8 percent as the deepening recession eroded earnings and pushed German business confidence to a 26-year low. Futures on the Standard & Poor’s 500 Index climbed 0.6 percent. The S&P 500 fell 3.5 percent yesterday to its lowest level since 1997 as concern that the deepening recession will erode earnings offset the government’s pledge to give more capital to banks. Canada’s currency will weaken to C$1.26 against the U.S. dollar by the end of the first quarter before rebounding to C$1.22 by year-end, according to the median forecast in a Bloomberg News survey of 43 economists. The yield on the two-year government bond held steady at 1.18 percent. The price of the 2.75 percent security due in December 2010 rose 1 cent to C$102.75.

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