SF: Canada Dollar Falls for First Time in Five Days on Retail Sales
June 11 (Bloomberg) -- Canada's dollar fell for the first time in five days after a report showed sales at retailers in the U.S unexpectedly dropped in May, signaling slower growth in the country's largest trading partner.
The currency, known as the loonie, headed for its best weekly performance since October 2009 on bets economic growth will fuel demand for the nation's raw materials and as investors sought currencies backed by relatively strong balance sheets.
"We have a lousy number out of the U.S., people may head toward risk aversion," said John Curran, a Toronto-based senior vice president at CanadianForex Ltd., an online foreign-exchange dealer. "People are definitely still feeling comfortable about the strength of the Canadian economy. Against the G-20 currencies Canada is doing extremely well."
The Canadian currency declined 0.7 percent to C$1.0365 per U.S. dollar at 9:25 a.m. in Toronto, compared with C$1.0297 yesterday, when it reached C$1.0288, the strongest since May 18. One Canadian dollar buys 97 U.S. cents. For the week the loonie has risen 2.5 percent, the biggest gain since the five days ended Oct. 9, 2009.
U.S. retail sales decreased 1.2 percent, the biggest drop since September 2009, following a 0.6 percent April gain that was larger than previously estimated, Commerce Department figures showed today in Washington.
The Canadian dollar also declined as crude oil, the country's largest export, fell 2.3 percent. Futures on the Standard & Poor's 500 Index dropped 0.8 percent. The loonie tends to follow movements in stocks and commodities.
