Canadian Dollar Weaker Versus Major Currencies, Tuesday, June 12, 2007 1:26:38 PM

The Canadian dollar experienced weakness against the major currencies Tuesday in New York. The loonie lost ground versus the greenback, euro, sterling, and yen. Tuesday`s action took place amid data showing that Canadian labor productivity accelerated during the first quarter.

The Canadian dollar slid versus the greenback Tuesday in New York. The loonie fell steadily through the morning, reaching an intraday low of 1.0651 at 11:30 am ET. The Canadian currency rebounded from some of its losses after that, reaching a mark of 1.0637 at 1:05 pm. This is compared to an intraday high of 1.0592 at 12:40 am. Greenback traders looked ahead to Thursday and Friday`s releases of American PPI and CPI data.

Versus the euro, the Canadian dollar edged lower Tuesday in New York. The Canadian currency experienced mostly choppy trading with its European counterpart during the morning before dipping lower in the early afternoon. At 1:10 pm ET, the loonie fetched a mark of 1.4172 against the euro. This is compared to an intraday high of 1.4143 at 3:20 am and an intraday low of 1.4187 at 11:30 am. Traders mulled data showing that German wholesale price growth slowed in May from the previous month.

The Canadian dollar fell versus the sterling Tuesday in New York. The loonie fell steadily through much of the morning, reaching an intraday low of 2.1029 at 11:30 am ET. The Canadian currency rebounded a bit from its losses to fetch a mark of 2.1000 at 1:13 pm. This is compared to an intraday high of 2.0895 at 4:50 am. Trading took place amid the release of data showing that UK Consumer Price Index annual inflation slowed more-than-expected in the month of May.

Against the yen, the Canadian dollar slid Tuesday in New York. The Canadian currency was largely uncertain with the yen through mid-morning before beginning to fall just before 7 am ET. The loonie hit an intraday low of 114.23 at 11:30 am. The Canadian dollar rebounded from its losses somewhat in the early afternoon, reaching a mark of 114.40 at 1:18 pm. This is compared to an intraday high of 114.93 at 3:20 am. Traders considered data showing that Japan`s consumer confidence index fell during May.

Tuesday morning, Statistics Canada released its report on Canadian labor productivity in the first quarter, showing that the pace of productivity growth accelerated rather sharply compared to the fourth quarter of last year. The report showed that labor productivity growth accelerated to 0.7% in the first quarter from a downwardly revised 0.2% in the previous quarter. The fourth quarter growth was originally reported at 0.3%.

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