By Chris Fournier
Nov. 14 (Bloomberg) -- Canada's currency depreciated against its U.S. counterpart on speculation that a slowdown in global economic growth may deepen, damping demand for commodities such as crude oil.
The Canadian dollar is poised to decline this week, falling 2.7 percent.
``We're very bullish on the U.S. dollar against the Canadian dollar,'' said Sebastien Galy, a currency strategist at BNP Paribas Securities SA in New York. ``Every indicator is pushing in the direction of further Canadian dollar weakness. Global growth is fading.''
The Canadian dollar dropped as much as 1.1 percent to C$1.2255 per U.S. dollar, from C$1.2119 yesterday. It traded at C$1.2215 at 8:33 a.m. in Toronto. One Canadian dollar buys 81.87 U.S. cents.
Galy forecasts the loonie, as Canada's dollar is known for the aquatic bird on the one-dollar coin, will weaken to C$1.30 ``very easily'' by year-end.
Europe's economy fell into its first recession in 15 years in the third quarter, paving the way for deeper cuts to interest rates and taxes amid the worst financial crisis since the Great Depression.
Crude oil, which accounts for about a tenth of Canada's export revenue, has lost 38 percent in a year.
Statistics Canada in Ottawa said manufacturing shipments in September rose 0.1 percent.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
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