TORONTO: The Canadian dollar edged lower against its US counterpart on Friday and a market measure of expected volatility slumped to its lowest level in one year, as investors awaited next week’s interest rate decisions by the Bank of Canada and the Federal Reserve.
The loonie was trading 0.1 percent lower at 1.3845 per US dollar, or 74.23 US cents, after moving in a range of 1.3832 to 1.3863. For the week, the currency was down 0.1 percent, which would be its second straight weekly decline. “I feel like we are just in a phase of consolidation,” said Sarah Ying, head of foreign exchange strategy at CIBC Capital Markets. “Volatility is going to continue to cool and we’re just sitting on our hands.” One-month implied vol fell below 4 percent on an annualized basis for the first time since September last year. It was above 9 percent in February as investors and the BoC grappled with the economic implications of an emerging tariff war.
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