TORONTO (Bloomberg) — Canadian stocks fell, completing a weekly decline, as the US dollar rallied on concern Europe's debt crisis and tensions on the Korean peninsula will escalate.

Barrick Gold Corp., the world's largest miner of the metal, dropped 0.3 percent as gold slid and the dollar rose to two month highs against the yen and euro. Suncor Energy Inc., Canada's largest oil and gas producer, slumped 1.1 percent as energy stocks fell. Silvercorp Metals Inc., the Vancouver-based mining company with operations in China, sank 0.9 percent after it was cut to "market perform" at Bank of Montreal and prices for the metal slipped.

The Standard & Poor's/TSX Composite Index declined 53.10 points, or 0.4 percent, to 12,892.71 as of 4.03pm in Toronto. The benchmark for Canadian stocks slid 0.5 percent his week.

"When I woke up this morning, all I heard was the concern on sovereign debt," said Irwin Michael, a money manager at ABC Group of Funds, which oversees C$1 billion ($981 million) in Toronto. "The Irish situation might precipitate problems in Spain and Portugal. There are worries on North and South Korea."

The Canadian benchmark has declined 1.2 percent since November 8 after surging 14 percent in the prior four months. The rally has trailed off as concern has mounted that more European countries will have trouble paying their debts and China twice increased reserve requirements for banks.

S&P cut ratings on Irish banks yesterday, reducing Anglo Irish Bank Corp.'s counterparty credit rating to junk. North Korea threatened a "shower of terrifying fire" as the USS Washington travelled to participate in drills with South Korea. Almost $2 trillion has been erased from global stocks in the past three weeks amid concern Ireland's debt crisis will spread to other European Union countries.

S&P lowered Anglo Irish Bank's rating six levels to B, or junk, from BBB, citing concern about sovereign support for the lender. The bank remains on CreditWatch with "negative implications," S&P said.

Barrick Gold slumped 0.3 percent to C$51.85 as gold declined the most in a week.