Canadian dollar rises ahead of potential further Fed easing steps
- Canadian government bond yields were lower across the curve in sympathy with U.S. Treasuries, with the 10-year down 1.9 basis points at 0.615pc.
TORONTO: The Canadian dollar strengthened against its U.S. counterpart on Wednesday ahead of a Federal Reserve interest rate announcement, as investors weighed the prospect of additional easing measures from the U.S. central bank.
Global stocks rose, while the U.S. dollar dropped to a three-month low against a basket of major currencies amid speculation the Fed will announce it intends to keep a recent rise in bond yields in check.
The loonie was trading 0.2pc higher at 1.3391 to the greenback, or 74.68 U.S. cents.
The currency, which on Monday notched a three-month high at 1.3352, traded in a range of 1.3370 to 1.3428.
Canada and the United States are set to extend a ban on non-essential travel to late July as both countries seek to control the spread of the coronavirus, according to three sources familiar with the matter.
The ban, currently due to expire on June 21, does not affect trade.
About 75pc of Canada's exports go to the United States, including oil.
U.S. crude oil futures fell 1.3pc to $38.42 a barrel after a report showed a rise in crude inventories in the United States, reviving concerns about oversupply and weak demand because of the coronavirus crisis.
Canadian government bond yields were lower across the curve in sympathy with U.S. Treasuries, with the 10-year down 1.9 basis points at 0.615pc.
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