Toronto - Arabstoday
Canada\'s dollar fell for a fourth week versus its US counterpart in the longest losing streak since June amid concern global growth will falter as the American economy stalls and Europe\'s debt crisis worsens. The loonie, as the currency is nicknamed, dropped against 13 of its 16 most-traded peers as crude oil, Canada\'s biggest export, tumbled for a fourth week. Yields on Canada\'s 10-year bonds touched a record low as economists cut forecasts for growth in the US, the nation\'s biggest trade partner. Retail sales in rose 0.6 per cent in June, data this week may show. \"US economic weakness is likely to filter into Canadian economic weakness before it filters into other currencies,\" Jack Spitz, managing director of foreign exchange at National Bank of Canada, said by phone from Toronto. \"Canada is lagging the broader market.\" Article continues below Growth questioned Canada\'s currency depreciated 0.3 per cent to 99.01 cents per US dollar on Friday in Toronto, compared with 98.73 cents on August 12. One Canadian dollar buys $1.010. The loonie headed for a monthly loss of 3.5 per cent, the most since June 2009. Government bonds climbed, pushing the yield on the benchmark 10-year note down 15 basis points, or 0.15 percentage point, to 2.30 per cent. It touched a record low 2.25 per cent on August 18. The price of the 3.25 per cent security maturing in June 2021 increased C$1.37 to C$108.26. Crude oil for September delivery dropped 3.65 per cent to $82.26 a barrel on the New York Mercantile Exchange. Raw materials including crude account for about half of Canada\'s export revenue. \"Crude oil has faltered,\" Spitz said. \"Growth, not only in emerging markets but certainty from a developed-world standpoint, is being questioned. As a result, crude oil is likely to be sold.\" The economy in the US may expand less than previously forecast in 2011 and 2012 because of potential \"political paralysis\" and fiscal tightening steps, Citigroup Inc said August 18 in a report. It cut its 2011 growth forecast to 1.6 per cent, from 1.7 per cent, and lowered its projection for next year to 2.1 per cent, from 2.7 per cent. \"The relative weakening of the Canadian dollar over the past 10 days is related to the worsening condition of the US economy,\" said Joseph Trevisani, chief market analyst at FX Solutions Inc in Saddle River, New Jersey. \"Canadian prospects obviously are closely tied to the US.\" European debt crisis European Union officials may push for joint bond sales by euro-area nations to help contain the region\'s sovereign-debt crisis, according to EU Economic and Monetary Affairs Commissioner Olli Rehn, putting pressure on Germany to drop its opposition.