SmartHomeOwners

TORONTO: The loonie shifted lower against the U.S. dollar on Tuesday morning as a report that showed Canada's economy is losing steam.

The Canadian dollar lost 0.78 of a cent to 97.39 cents US as markets turn to the perceived safety of the greenback.

On the commodities markets, risk adverse traders sold off oil and invested in gold. The January crude contract fell 84 cents to US$84.89 a barrel, while the December bullion contract gained $17 to $1,383 an ounce.

The U.S. dollar made gains against many other currencies, including the euro, which briefly dipped US$1.30 for the first time since mid-September.

Traders' concerns over slowing growth in Europe continue to punish the euro, as uncertainty prevails over whether Portugal and Spain will require a bailout.

Meanwhile, a Statistics Canada report released early Tuesday found that annualized gross domestic product rose one per cent in the third quarter, less than the 1.4 per cent growth economists had expected.

That slower-than-expected growth could influence the central bank to leave interest rates alone.