Canadian Dollar Hits Session Low As US Jobs Data Disappoint

TORONTO (Dow Jones)--The Canadian dollar slumped to a session low early Friday after U.S. nonfarm payrolls came in flat, raising fresh concerns over the strength of the economic recovery in the U.S.

The U.S. dollar strengthened to C$0.9824 from C$0.9780 , and from C$0.9770 late Thursday, according to data provider CQG.

The Canadian dollar, seen as a barometer of risk, strongly tracks macroeconomic data and growth outlooks of the U.S., which consumes nearly 70% of Canada's exports.

"The payroll number was pretty awful at first glance. Expectations were pretty low going into this data number, but it nevertheless shocked the market," said Blake Jespersen , director of FX sales at BMO Capital Markets in Toronto .

Payroll data assumed greater significance after U.S. Federal Reserve Chairman Ben Bernanke last week said the central bank still had the tools to stimulate growth if the situation warranted, putting the focus squarely on macroeconomic data.

"The data will amplify fears of recession or near-recession conditions in the U.S. economy," Avery Shenfeld , chief economist at CIBC World Markets in Toronto .

-By Satish Sarangarajan