By Chris Fournier Dec. 16 (Bloomberg) -- Canada’s dollar was little changed against its U.S. counterpart amid speculation the Federal Reserve will hold its benchmark interest rate at a record low to help sustain the global economic recovery. The Canadian currency fell 0.3 percent in December after rising 2.7 percent last month. The greenback dropped today against 11 of its 16 most-traded counterparts before the Federal Open Market Committee issues its rate decision and policy statement around 2:15 p.m. Stocks and crude oil gained. “There will be a lot of just backing and filling before the FOMC,” said Stephen Gallo, head of market analysis at Schneider Foreign Exchange in London. The Canadian dollar traded at C$1.0609 per U.S. dollar at 8:23 a.m. in Toronto, from C$1.0612 yesterday. One Canadian dollar buys 94.26 U.S. cents. Crude oil for January delivery rose 0.9 percent to $71.32 a barrel on the New York Mercantile Exchange. The commodity, which gained 60 percent this year, fell two days ago to the lowest level since Oct. 5, $68.59 a barrel. Crude is the largest component in the Bank of Canada’s Commodity Price Index, accounting for 21 percent. Futures on the Standard & Poor’s 500 Index rose 0.4 percent. The MSCI World Index, a benchmark of stocks in 23 developed markets, gained 0.4 percent. The Canadian dollar tends to track changes in stocks and commodity prices. U.S. Target Rate Canada’s currency, nicknamed the loonie for the image of the aquatic fowl on the C$1 coin, gained against half the 16 most-traded currencies tracked by Bloomberg. U.S. policy makers will hold the target rate for overnight loans between banks at a range of zero to 0.25 percent today, all 98 economists in a Bloomberg survey forecast. The Fed said at its last meeting said it intended to hold borrowing costs near zero for an “extended period.” “Odds are tipped to it not being a massive event either way -- however, there is a risk they could toy with the ‘extended period’ language, or announce more comprehensive measures to withdraw liquidity in 2010,” said Gallo. Consumer prices rose in November 0.8 percent from a year earlier, Statistics Canada is likely to report tomorrow, according to the median estimate of 21 economists in a Bloomberg survey. To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net

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