Canada’s dollar will reach parity by the end of 2010 as the U.S. currency continues to weaken, according to Scotia Capital. “We are biased toward the possibility that the Canadian dollar temporarily breaches parity against the U.S. dollar in the interim once we begin to see quarterly growth globally, and a strong, coincident surge in commodities,” Sacha Tihanyi, a currency strategist in Toronto at Scotia Capital, a unit of Canada’s third-biggest bank, said in a note today. The Canadian currency was little changed at C$1.1094 per U.S. dollar at 8:38 a.m. in Toronto, from C$1.1104 yesterday. One Canadian dollar buys 90.14 U.S. cents. Canada’s dollar reached parity with its U.S. counterpart for the first time in three decades in September 2007 following a 60 percent climb over five years. The gains were fueled by rising prices for commodities, which account for more than half of Canada’s export revenue.

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