By Chris Fournier Sept. 18 (Bloomberg) -- Canada’s dollar dropped from an 11- month high after the currency failed to close below a technical level and global stocks and commodities dropped. “The failure of the market to register a close below key support at C$1.0633 has triggered some short covering,” said George Davis, chief technical analyst for fixed-income and currency strategy at RBC Capital Markets, a unit of Canada’s largest lender. Support refers to the lower boundary of a trading range where buy orders may be clustered. Short covering means buying a currency to cover wrong-way bets it would fall. The Canadian currency depreciated 0.6 percent to C$1.0710 per U.S. dollar at 8:25 a.m. in Toronto, from C$1.10646 yesterday, when it touched C$1.0592, the strongest level since Oct. 1. One Canadian dollar buys 93.37 U.S. cents. “Weak equity markets have pushed the U.S. dollar broadly higher,” Toronto-based Davis said. “Commodities are a bit weak as well, which isn’t helping.” Canada’s dollar, nicknamed the loonie, lagged behind all but three of the 16 most-traded currencies tracked by Bloomberg, the pound, Norway’s krone and South Africa’s rand. The U.S. dollar rose against 13 of its 16 most-traded counterparts. Crude oil for October delivery fell as much as $1.20, or 1.7 percent, to $71.27 a barrel in electronic trading on the New York Mercantile Exchange. U.S. stock-index futures swung between gains and losses amid speculation the six-month rally in equities may have outpaced the prospects for growth. Futures on the Standard & Poor’s 500 Index expiring in December added 0.04 percent, after declining as much as 0.6 percent.

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