Markets have taken a beating after a meeting of the G7 finance ministers over the weekend suggested that countries curtail their currency interventions. The U.S. dollar has fallen on the news, particularly against the yen. The Canadian dollar is enjoying a big gain, too.

At midday, the S&P/TSX composite index is down 24 points to 7,578.

Volume is decent at 121.7 million shares, with selling edging the buying 58:55. Market breadth is certainly negative though, with losers outnumbering winners 15:11.

The weakness in most sectors is offset by a heavy representation of gold stocks in the Toronto market, as the weakness in the U.S. dollar is pumping up gold prices. The TSX gold group is up 1.7% on the news.

But most other sectors are down on the currency moves, notably anything that has to export to the U.S. is getting hit. Techs are weakest, down 1.7%. There is also selling in consumer stocks, industrials, telecoms and trusts. Energy stocks are the only other group that’s up a bit.

Nortel is leading the tech area slide, down 1.1% on 13.6 million shares. Tundra Semi is down 6%, Cognos has lost 4%. Telus is down about 2%. Cinram is weaker, too.

CN Rail is down 1.4%, the banks are a bit lower, and there is selling in Abitibi, International Forest Products, ID Biomedical, and Kingsway Financial.

The trust sector continues to take a thumping on accounting worries. Atlas Cold Storage is down another 7.5%. Enerplus is weaker too.

Biomira is down 11% on news that it has arranged a financing of US$16.3 million, with Rodman & Renshaw Inc. of New York acting as exclusive placement agent.

Golds are all higher following the gain in commodity prices. Kinross is up 0.7%, Wheaton River has added 2.2%, Placer Dome is 1.5% higher, and there are gains in Iamgold, Nevsun Resources, Apollo Gold and Bema Gold

Barrick is up almost 1%, after announcing it has acquired a joint venture option from Iamgold on a property in, southern Argentina. Barrick can earn a 70% interest in the properties by a staged expenditure totaling US$12.5 million on exploration over an eight-year period.

Agnico-Eagle Mines has closed a transaction to purchase Barrick’s Bousquet property in northwestern Quebec. The purchase consideration paid by Agnico-Eagle on closing was $5 million in cash and $2 million in common shares of Agnico-Eagle, and the assumption of specified reclamation obligations. Barrick retains a 2% net smelter return royalty on all the properties acquired by Agnico-Eagle.

The energy sector is rallying a little, with EnCana up almost 1% on news that it has recently completed the acquisition of about 500,000 acres of prospective natural gas development lands in the Canadian Rocky Mountain foothills. There is also strength in Ivanhoe Energy, Ultra Petroleum, and Queenstake Resources.

Mitec and Oncolytics Biotech are both jumping today.

In other news, Breakwater Resources has arranged a $25 million bought-deal financing with a syndicate of investment dealers led by Griffiths McBurney & Partners, and including Dundee Securities Corporation, McFarlane Gordon Inc., National Bank Financial Inc. and Paradigm Capital Inc.

MDSI Mobile Data Solutions reports that it has retained Bear, Stearns & Co. Inc. as financial adviser to the board. The board is evaluating potential business combinations, financing and other strategic alternatives to help the company offer enhanced products and services to its customers, and maximize shareholder value.

In New York, the falling U.S. dollar is dominating the trade. The Dow Jones industrial average has dropped 97 points on the news, to 9m548. The tech-heavy Nasdaq is off 29 points at 1876. The broader S&P 500 is down 14 points to 1,022.

The S&P/TSX Venture index has dropped six ticks to 1,378. Volume is still strong there though, with 42.3 million shares trading. ECU Silver Mining is leading the way, up 3¢ to 11.5¢ on 2.4 million shares.