Canadian dollar dropped after showing the nation's economic growth forecasts lost

Canadian dollar dropped compared with commodity-linked counterparts after a report showed the nation's economic growth forecasts lost, adding to evidence of recovery can be prolonged.

The Canadian currency, known as the Canadian dollar strengthened against the dollar as crude oil climbed to the highest level in over two years. The Canadian dollar led to a gain of 0.5 percent in the week, after falling the previous two. It has risen 4.3 percent this year against the U.S. dollar, the ninth best performance among its 16 major counterparts.

The U.S. dollar pair Canadian dollar currency "has been less attuned to the risk of finding the feelings," said Brian Kim, currency strategist at UBS in Stamford, Connecticut, via email. "It's probably the choppiness in the Canadian and U.S. data that batting around the couple."

Canadian dollar fell 0.5 percent to 75.42 Canadian cents per dollar of New Zealand at 5 pm in Toronto from 75.01 cents yesterday, and declined 0.2 percent to C $ 1.0138 per Australian dollar, from $ 1.0122. Australia and New Zealand, like Canada, are based on raw materials for export earnings.

The Canadian dollar gained 0.4 percent to C $ 1.0095 per U.S. dollar, from $ 1.0132 yesterday, after depreciation of up to 0.3 percent. It touched C $ 1.0209 per dollar on 20 December, the lowest since Dec. 1.

Canadian gross domestic product grew 0.2 percent to a seasonally adjusted annual rate of C $ 1,240,000,000,000 (1.22 trillion U.S. dollars) in October after contracting 0.1 percent in September, the national statistics agency said today in Ottawa.

Bond Reduction

Crude oil for February delivery rose to 1.3 percent, to $ 91.63 a barrel in New York, the highest since October 2008. The oil is the largest Canadian export. 500 of Standard & Poor's fell 0.2 percent.

Government bonds fell, bringing the yield on the two years for up to five basis points, or 0.05 percentage point to 1.72 percent, the highest level in a week. It touched 1.76 percent on Dec. 13, the highest since Nov. 25. The price of the guarantee of 1.5 percent due December 2012 fell 6 cents to C $ 99.64.

Canadian dollar, known as the Canadian dollar for the image of waterfowl in the C $ 1 coin, will strengthen the dollar peg at the end of March, and trade there for most of 2011.

New Zealand Dollar

New Zealand's currency was the best performer among the major partners of the dollar. The U.S. dollar fell against most of its peers after reports showed U.S. economic recovery is gaining momentum, creating demand for higher yielding assets. The data showed that household spending and capital goods orders rose in November and initial claims for unemployment insurance benefits fell last week.

Canadian Finance Minister Jim Flaherty said the budget next year will include measures to help boost economic growth without losing sight of the long-term goal of a balanced budget.

Expansion of training programs and "significant" infrastructure spending will be part of Canada's 2011 budget, Flaherty said in a Dec. 21 interview. However, the country's finances back in balance "anchor" of the fiscal plan, he said.