Since 2008 the Canada Dollar Weakens the Most as Economy Trails U.S.
On Tuesday, the Canadian dollar closed higher at the end of a year in which the loonie, as the Canadian dollar is known, fell below parity with the U. S. dollar, with little hope that it will regain the level any time soon.
The loonie rose 0.04 of a cent to 94.02 cents U. S. for a loss of 6.4 per cent during 2013.
Yesterday, the currency rose versus its U. S. counterpart to trim its annual drop to 6.6 percent. Canada's dollar declined this year against 11 of 16 major peers as inflation dipped below 1 percent after central-bank Governor Stephen Poloz called a 2 percent goal sacrosanct. The currency fell against the greenback in eight of 12 months as the Fed begins reducing the bond-buying that has helped cap borrowing costs.
Blake Jespersen, managing director of foreign exchange at Bank of Montreal, yesterday said from Toronto, Poloz would like our currency weaker, and for the most part he has succeeded. There is a good chance, when we get back to normal, we may see some of this move go back over. The Canadian dollar does have more room to fall.
The Canadian loonie, known for the image of the aquatic bird on the C$1 coin, fell to C$1.0654 per U. S. dollar in Toronto in the largest annual drop since an 18 percent plunge in 2008. It gained 2.9 percent in 2012. One loonie buys
94.14 U. S. cents.
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