Canada’s dollar dropped for the first time
in four days against the greenback as crude oil fell after a report showed U.S.
inventories rose to a two-year high and North American stocks declined.
The loonie, as the Canadian dollar is also
known for the image of the aquatic bird on the C$1 coin, weakened a day after
Finance Minister Jim Flaherty said the government wants to avoid extreme currency fluctuations.
“The loonie will have trouble making
further gains today because oil remains a little weak,” said Rahim Madhavji,
president at Knightsbridge Foreign Exchange Inc. in Toronto.
Canada’s dollar depreciated 0.5 percent to
96.15 cents versus the greenback at 1:21 p.m. in Toronto, from 95.68 cents
yesterday. One Canadian dollar buys $1.0402. The currency touched 94.46 cents
on April 29, the strongest level since November 2007.
Crude oil for June delivery fell 3.7
percent to $100.09 a barrel. The Standard & Poor’s 500 Index slid 1.2
percent. The S&P/TSX Composite Index dropped 1.6 percent.
Supplies of crude in the U.S., Canada’s biggest trading partner,
jumped 3.78 million barrels to 370.3 million in the week ended May 6, the
Energy Department said today in a weekly report. Inventories were forecast to
climb by 1.5 million barrels, according to the median forecast of 16 analysts
in a Bloomberg News survey. The increase puts supplies at the highest level
since May 8, 2009.
The loonie advanced 0.9 percent to C$1.3665
against the euro on speculation Greece
may restructure its debt as Canada’s economy grows stronger. The Canadian
currency touched C$1.3652, the strongest level since April 1.