Canadian dollar retreats from 7-week high as oil prices fall
- Gold notched a record high before the sheer scale of its gains drew a burst of profit-taking, which in turn helped the U.S. dollar from two-year lows.
TORONTO: The Canadian dollar weakened against its U.S. counterpart on Tuesday as oil and gold prices fell, with the loonie pulling back from its highest level in nearly seven weeks reached earlier in the session.
The price of oil, one of Canada's major exports, was lower as demand worries due to a rise in coronavirus cases worldwide undermined support coming from hopes for additional U.S. economic stimulus measures. U.S. crude prices were down 0.8pc at $41.25 a barrel.
Gold notched a record high before the sheer scale of its gains drew a burst of profit-taking, which in turn helped the U.S. dollar from two-year lows.
The Canadian dollar was trading 0.2pc lower at 1.3382 to the greenback, or 74.73 U.S. cents. The currency, which has benefited in recent weeks from signs of global economic recovery, touched its strongest intraday level since June 10 at 1.3331.
Canadian government bond yields were lower across much of a flatter curve, with the 10-year down 3.4 basis points at 0.489pc.
The move lower in yields came ahead of the start of a two-day meeting of the U.S. Federal Reserve. The Fed could confirm recent hints about the benefits of an average inflation target, which would allow rates to stay lower for longer.
Canada's GDP report for May is due on Friday.
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