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.

By Alastair Sharp. TORONTO (Reuters) - The Canadian dollar took a hit from unexpectedly soft domestic retail sales data, sliding to a 10-week low against 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?

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.

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.

TORONTO--The Canadian dollar ended modestly lower Tuesday, but bounced back from earlier lows after an official with the U.S.