BLBG: Canada Dollar Erases Loss as U.S. Manufacturing Index Contracts
Canada’s dollar erased a loss against its U.S. counterpart after manufacturing in the New York region contracted more than forecast, a sign the world’s largest economy will get less support from industry.
The loonie, as the currency is known for the image of the waterfowl on the C$1 coin, slipped earlier as European Union finance ministers were deadlocked over efforts to quell the region’s sovereign-debt crisis. The currency traded near a 13- week high reached last week after stimulus measures by the Federal Reserve spurred global demand for higher-yielding assets.
“Markets are waiting for the next big impetus and there is a lot more focus on Europe,” Greg Moore, currency strategist at Toronto-Dominion Bank (TD)’s TD Securities, said in a telephone interview.
The Canadian dollar was little changed at 97.11 cents per U.S. dollar at 9:02 a.m. in Toronto. The currency has gained 5 percent this year. One Canadian dollar buys $1.0298.
The Federal Reserve Bank of New York’s general economic index dropped to minus 10.41, the lowest since April 2009, from minus 5.85 in August. The median forecast of 53 economists in a Bloomberg survey called for minus 2. Readings less than zero signal contraction in the so-called Empire State Index that covers New York, northern New Jersey and southern Connecticut.
To contact the reporter on this story: Katia Dmitrieva in New York at edmitrieva1@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
