Canada’s dollar dropped against its U.S. counterpart for a second day as European stocks and commodities such as crude oil fell, dimming the appeal of currencies tied to growth. The loonie, as the currency is also known, slid versus the euro after European Union leaders agreed on a mechanism to contain future debt shocks. Canada’s currency pared its weekly gain versus the greenback to 0.2 percent. “Oil is coming off, daily ranges are still very tight, and the U.S. dollar is fairly well-supported,” Sacha Tihanyi, a currency strategist in Toronto at Bank of Nova Scotia’s Scotia Capital unit, wrote via e-mail. “That leaves the Canadian dollar a mid- to under-performer.” The Canadian currency slid 0.2 percent to C$1.0077 per U.S. dollar at 8:14 a.m. in Toronto, from C$1.0061 yesterday. One Canadian dollar buys 99.27 U.S. cents. The loonie slipped 0.3 percent to C$1.3370 against the euro. Crude oil for January delivery dropped 0.5 percent to $87.27 a barrel. The Stoxx Europe 600 Index fell 0.4 percent. To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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