Canadian dollar weakened against most major peers

Canadian dollar weakened against most major peers, including the dollar as crude oil fell and European Union leaders met to discuss a system to combat crisis amid debt problems will concern Europe worse.

The Canadian currency fell against nine of its 16 most-traded counterparts, falling more against the pound sterling and the South Korean won. It has traded between C and C $ 1.0287 $ 1.0001 against U.S. dollar last month. Foreign investors buy more Canadian securities sold for the seventh month, Statistics Canada said.

"Canada corporate accounts are buying U.S. dollars under, and no purchase of foreign sovereign and Canadian dollars for reserves and values," said John Curran, senior vice president based in Toronto in CanadianForex Ltd. an online dealer of foreign exchange by telephone from Toronto. "We are locked in a wide here until there is a clear winner."

Canada's currency fell 0.1 percent to C $ 1.0056 per U.S. dollar at 11:10 am in Toronto, compared with C $ 1.0050 yesterday, when it touched C $ 1.0001, the strongest level since 11 November. Fell 0.4 percent to C $ 1.5681 against the pound and dropped 0.6 percent to 1,150.19 won. One Canadian dollar buys 99.31 U.S. cents.

EU leaders begin a two-day summit in Brussels today with the focus on a permanent system to combat the crisis. Are close to an amendment to block the Lisbon Treaty which provides a "mechanism to safeguard the stability of the euro area as a whole" with the financial support for governments in trouble "subject to strict conditions, officials said reporters yesterday.

Weakened against the euro

The Canadian dollar weakened to 0.4 percent against the euro to C $ 1.3334, near the C $ 1.3206 it reached on 2 December, the lowest since Sept. 14. Was little changed at C $ 1.3275 today after jumping 1.4 percent yesterday against the common currency, most in three weeks.

"The underlying trend here seems to be lower" for the euro against the Canadian dollar, Shaun Osborne, currency strategist at TD in Toronto at Toronto-Dominion Bank's securities unit, said via e-mail. "C $ 1.3220 to $ 1.3230 C is technically a very important support, because it connects July, September and December minimum principles." Support refers to the lower limit of a trading range in purchase orders can be grouped.

Foreigners bought a net C $ 9,510,000,000 ($ 9,460,000,000) of Canadian securities in October, more than half of which was corporate bonds, approaching a record year, based in Ottawa, Statistics Canada said today.

Government Bonds

note yield 10-year Canada fell two basis points, or 0.02 percentage point to 3.30 percent, after touching 3372 percent two days ago, the most since June 21. The price of the 3.5 percent security maturing in June 2020 rose 19 cents to C $ 101.63.

Canadian government bonds have fallen 1.4 percent this month, according to the rate of Bank of America Merrill Lynch.

The dollar reversed a slide against most major partners Monday after data showed manufacturing unexpectedly in the Philadelphia region expanded in December at its fastest pace since April 2005, orders and higher factory workweek. The Philadelphia Federal Reserve general economic index rose to 24.3 from 22.5 last month. It had been forecast in a survey to decline to 15.

Crude oil for January delivery fell to 0.9 percent in New York, to $ 87.84 a barrel. Canada derives about half of its exports from the sale of commodities such as oil.