Canada’s dollar retreated from the highest closing level in more than a month as renewed concern over Europe’s sovereign-debt crisis made investors wary of riskier assets such as growth-linked currencies. The loonie declined as El Economista reported that the International Monetary Fund, the European Union and the U.S. Treasury are putting together a credit line of as much as 250 billion euros ($307 billion) for Spain. The report was denied by the EU and the Spanish government. “Yields of some of the weaker European members are rising,” Camilla Sutton, director of currency strategy at Bank of Nova Scotia, Canada’s third-largest lender, said by phone from Toronto, referring to Spain and Greece. “That’s pushing risk aversion slightly higher, which is weighing on the Canadian dollar.” The Canadian currency depreciated 0.4 percent to C$1.0297 per U.S. dollar at 7:53 a.m. in Toronto, compared with C$1.0254 yesterday, the strongest closing level since May 13. One Canadian dollar buys 97.12 U.S. cents Futures on the Standard & Poor’s 500 Index fell 0.4 percent. Canada’s dollar, which is closely correlated to movements in global equities, has risen 1.5 percent this month, tracking the Standard & Poor’s 500 Index, which is up 2.4 percent over the same time. The Bank of Canada will post on its Web site at 11:35 a.m. New York time the text of a speech by Governor Mark Carney in Charlottetown, Prince Edward Island. Carney on June 1 became the first Group of Seven central banker to raise interest rates since last year’s global recession. To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net

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