TORONTO: The Canadian dollar edged lower against its US counterpart on Thursday, pulling back from an earlier 10-day high as oil prices fell and ahead of a speech by Bank of Canada Deputy Governor Lawrence Schembri.
At 9:09 a.m. EST (1409 GMT), the Canadian dollar was trading 0.1 percent lower at C$1.2508 to the greenback, or 79.95 US cents, underperforming some other major currencies.
The loonie's weakest level of the session was C$1.2525, while it touched its strongest since Feb. 5 at C$1.2466.
Schembri will speak on the country's approach to inflation stability. Analysts will look for any update on the Bank of Canada's inflation outlook and what impact it could have on the path of monetary policy following three interest rate hikes since last July.
The central bank will release his prepared remarks at 13:30 p.m. EST (1830 GMT).
The price of oil, one of Canada's major exports, slipped as record US production and rising inventories outweighed a weak US dollar and Saudi Arabia's comments that major producers were committed to their pact on cutting supplies.
US crude prices were down 0.7 percent at $60.18 a barrel.
The US dollar fell against a basket of major currencies, hitting a 15-month low against the yen, as negative sentiment around the dollar outweighed a rise in 10-year US Treasury yields to their highest levels in four years.
Canadian government bond prices were lower across the yield curve in sympathy with US Treasuries after US data showed a stronger-than-expected rise in underlying producer prices.
The five-year dipped 4 Canadian cents to yield 2.162 percent and the 10-year declined 13 Canadian cents to yield 2.391 percent.
The 5-year yield posted its highest intraday since September 2013 at 2.173 percent.
Resales of Canadian homes dropped 14.5 percent in January from December to the lowest monthly level in three years as tighter mortgage rules doused demand, the Canadian Real Estate Association said.
Comments
Comments are closed for this article.