U.S. dollar's decline a concern for Flaherty

"Finance Minister Jim Flaherty warned Thursday he remains worried about U.S. economic weakness -- a key factor in pushing the currency to a one-for-one basis with the U.S. greenback.

He said continued weakness in the U.S. housing sector, as well as soft demand for cars, remains a "significant concern" for the Canadian economy, and is watching the U.S. economy closely.

"Our forestry industry and many of our manufacturers supply the [housing] market in the United States, and it is going through a difficult time," a subdued Mr. Flaherty told reporters, adding most of the cars built in Canada are sent to the United States for sale."

"The Canadian Manufacturers and Exporters warned Thursday that for every cent the dollar goes above par, the sector will lose $1.5-billion per year on a national basis."

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U.S. dollar's decline a concern for Flaherty