Bloomberg News

Canadian Dollar Rises From Eight-Month Low After Growth Report

March 01, 2013

The Canadian dollar rose from the lowest level in eight months against its U.S. counterpart after a report showed the economy expanded in the fourth quarter.

Gross domestic product grew at a 0.6 percent annualized pace from October to December, the slowest since the second quarter of 2011, Statistics Canada said today from Ottawa. The quarter ended with a 0.2 percent decline in output in December, led by manufacturers and retailers.

“The Canadian GDP is a sign Canada entered the year on a strong footing,” Adam Button, a currency analyst at Forexlive.com, said by telephone from Montreal before the release. “But we’re already into March and these numbers are already deep in the rear-view mirror, so I don’t believe it will derail the Canadian dollar’s trajectory towards last year’s lows.”

The loonie, as the Canadian dollar is known for the image of the water fowl on the C$1 coin, fell 0.2 percent to C$1.0323 per U.S. dollar at 8:34 a.m. in Toronto. Earlier it touched C$1.0342 per U.S. dollar, it’s weakest since June. One loonie buys 96.87 U.S. cents.

The Canadian dollar’s lowest point last year was C$1.0447 per U.S. dollar on June 4.

To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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