Canada's Dollar Rallies From One-Week Low on U.S. Weakness

By Chris Fournier

Oct. 1 (Bloomberg) -- Canada's currency strengthened for the first time in three days, rising from the lowest in more than a week, after the U.S. dollar fell against most major currencies.

The Canadian dollar climbed as much as 0.9 percent to C$1.0547 per U.S. dollar, from C$1.0644 yesterday. It traded at C$1.0591 at 8:10 a.m. in Toronto. Yesterday it touched C$1.0664, the weakest since Sept. 19. One Canadian dollar buys 94.41 U.S. cents.

Canada's currency is ``following the flow within the overall trend to sell U.S. dollars,'' said Jack Spitz, a managing director of foreign exchange at National Bank of Canada in Toronto.

The loonie, as Canada's currency is known because of the aquatic bird on the one-dollar coin, will slip to C$1.13 against the U.S. dollar by the end of 2009, according to the median forecast in a Bloomberg News survey of economists.

To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net