BLBG:Canadian Dollar Falls as Renewed Focus on Europe Sours Sentiment
The Canadian dollar fell against its U.S. counterpart for the first time this week as reports that steps to strengthen Europe’s financial system were faltering sent the currencies of commodity exporters down.
The currency pared a weekly gain against the greenback as Cyprus was forced to deny it required additional European aid and Germany’s Handelsblatt newspaper reported a discussion on direct bank recapitalization from Europe’s bailout fund was “going in circles.” Retail sales in the U.S., Canada’s biggest trading partner, are forecast to have stalled in March, according to the median estimate of 69 economists in a Bloomberg survey. Crude oil, Canada’s biggest export, fell.
“I wouldn’t be surprised if we see the Canadian dollar weaken off at a very gradual pace today,” said David Bradley, director of foreign-exchange trading in Toronto at Scotia Capital Inc., a unit of Bank of Nova Scotia. “It’s just a risk- off scenario because of continuing problems in Europe that’s caused the Canadian dollar to sell off.”
The loonie, as the Canadian dollar is known for the image of the waterfowl on the C$1 coin, fell 0.2 percent to C$1.0124 per U.S. dollar at 7:50 a.m. in Toronto. The currency has gained 0.5 percent this week. One loonie buys 98.79 U.S. cents.
To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net
To contact the editor responsible for this story: Robert Burgess at bburgess@bloomberg.net
