Canada's dollar fell to a more than two-month low against its U.S. counterpart amid speculation growth in the world's largest economy would spur the Federal Reserve to reduce stimulus, known as quantitative easing.

Porter, speaking in an interview Tuesday at Bloomberg's Canada Economic Summit in Toronto, said the Canadian dollar will continue to be supported by safe-haven flows in the next couple of years, keeping it trading near parity with the U.S.

�Ordinarily, we might expect the Canadian dollar to benefit from an accelerating U.S. economy. If the U.S. economy is doing better, what about growth-related currencies in the G10?

The Canadian dollar declined to a two-month low versus its U.S. counterpart after the annual inflation rate fell in April to its slowest in more than three years, bolstering the case for lower interest rates.

The Canadian dollar gained for the first time in five days versus its U.S. counterpart after American industrial production dropped in April by the most in eight months.

Toronto-Dominion Bank says the loonie, now at near par, will tumble to 90 cents by early next year, before recovering to 93 cents by the end of 2014.

By Don Curren. TORONTO--The Canadian dollar is little changed Tuesday ahead of an early afternoon speech by departing Bank of Canada Gov.

The Canadian dollar weakened Friday morning after inflation data came in lower than expected, reinforcing the view price pressures are well under control.

The currency had touched a session high of C$1.0209 to the U.S. dollar in early trading, but had slipped to the C$1.0190 area just before the release of a trifecta of weak U.S.

Canada's dollar gained against its U.S. counterpart for a third day as the Reserve Bank of Australia cut its benchmark interest rate to a record 2.75 percent, intensifying the search for higher-yielding assets.