Canada’s dollar fell after Japan intervened in currency markets to weaken the yen, sending the U.S. dollar higher against all of its 16 major counterparts. The Canadian currency, which capped a fourth weekly advance on Oct. 28 on optimism Europe’s leaders will manage to contain the region’s debt crisis, outperformed a majority of its most- traded peers today. The nation’s economy expanded in August for a third straight month, Statistics Canada is forecast to report today. “The big news is the Japan intervention,” said Firas Askari, head of currency trading in Toronto at Bank of Montreal’s BMO Capital Markets unit, by e-mail. “Domestic numbers are of secondary importance. The key determinants of the Canadian dollar’s fate are nondomestic in nature.” Canada’s currency fell 0.4 percent to 99.59 cents per U.S. dollar at 8:03 a.m. in Toronto. The currency is headed for a 5.4 percent gain this month, the most since it rose 7.9 percent in July 2009. One Canadian dollar buys $1.0036. Economists surveyed by Bloomberg forecast the Canadian economy grew 0.2 percent in August, according to the median of 24 responses. Statistics Canada will also give factory inflation data for September at 8:30 a.m. Toronto time. 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

Source