TORONTO: The Canadian dollar weakened to a seven-week low against its US counterpart on Friday as rising economic and political uncertainties raised demand for safe-haven currencies, with the loonie losing ground for the third straight week.
The loonie was trading 0.2% lower at 1.3385 to the greenback, or 74.71 US cents. The currency touched its weakest intraday level since Aug. 4 at 1.3418.
For the week, the loonie was down 1.4%. That was its biggest weekly decline since April.
“Risk sentiment this month is not doing so well,” said Mazen Issa, a senior FX strategist at TD Securities. “I think it is pretty clear that we’re in a (US) dollar firming tactical phase ... CAD has been a byproduct of that.” Canadian government bond yields were lower across much of a flatter curve, with the 10-year down 1.4 basis points at 0.543%.
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