Video: How much higher can U.S. stocks go? The loonie, as the dollar coin is known in Canada, has lost more than 4 per cent this year, which puts the currency �exactly in the middle of the pack,� said senior economist Benjamin Reitzes of BMO Nesbitt Burns.

The Canadian dollar extended a decline to a two-month low against its U.S. peer after retail sales stagnated in March, boosting bets the Bank of Canada will move away from its bias to raise interest rates.

�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?

Canada's dollar dropped to an almost one-year low versus its U.S. peer after Federal Reserve Chairman Ben S. Bernanke said monthly bond purchases may be reduced if the economy shows sustained growth.

In trading on Wednesday, shares of the Canadian Dollar Trust ETF (AMEX: FXC) entered into oversold territory, changing hands as low as $95.71 per share.

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.

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.

TORONTO - The Canadian dollar headed lower Friday after Statistics Canada reported that consumer prices rose last month at the slowest rate it's seen in more than three years.

A Canadian dollar, left, and a Euro are seen next to a series of U.S. dollars in this January 26, 2011 photo in Montreal. THE CANADIAN PRESS/Paul Chiasson.

Porter, speaking in an interview today 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.