Canada’s dollar traded at almost the weakest level in more than a year versus its U.S. counterpart after Moody’s Investors Service cut Italy’s credit ranking, spurring concern Europe’s debt crisis will crimp global growth. The Canadian currency fell against a majority of its major peers. Losses in Canada’s dollar were limited by gains in U.S. stock-index futures and commodities such as crude oil. “The big problem in Europe is still weighing down the rest of the market,” said C.J. Gavsie, managing director for currency trading at Bank of Montreal, by phone from Toronto. The Canadian currency was little changed at C$1.0514 per U.S. dollar at 7:37 a.m. in Toronto, compared with C$1.0513 yesterday, when it depreciated to C$1.0658, the weakest level since August 2010. One Canadian dollar buys 95.11 U.S. cents. Moody’s cut Italy’s debt rating three levels, citing concern the government will struggle to reduce the region’s second-largest debt levels. “We’re starting to see a reversal of that risk-off type of trade, meaning U.S. equity futures so far are showing some decent moves towards the upside,” said Gavsie. “That first little taste of risk-on is starting to follow through into dollar-Canada and we’re seeing those weak longs get shaken out of the market.” A long position is a bet that an asset will rise in value. Futures on the Standard & Poor’s 500 Index rose 0.5 percent. To contact the reporter on this story: Chris Fournier in Halifax, Nova Scotia at cfournier3@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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