Canadian dollar turns lower for the month as oil slumps
- Canadian dollar falls 0.4% against the greenback.
- Loonie touches a four-week low at 1.3380.
- Price of US oil falls nearly 6%.
- Canadian bond yields trade mixed across a flatter curve.
TORONTO: The Canadian dollar fell to a four-week low against its broadly stronger US counterpart on Thursday as oil prices tumbled, with investors concerned that rising coronavirus infections could derail a global economic recovery.
The Canadian dollar was trading 0.4% lower at 1.3379 to the greenback, or 74.74 US cents. The currency touched its weakest intraday level since Sept. 30 at 1.3380.
For the month, the loonie was down 0.4%, having been up as much as 1.8% just eight days ago.
The price of oil, one of Canada's major exports, fell to its lowest since mid-June, extending the previous day's sharp decline on the potential impact renewed coronavirus lockdowns will have on oil demand.
US crude prices were down nearly 6% at $35.16 a barrel, while the safe-haven US dollar climbed against a basket of major currencies.
Canada's finance minister said on Wednesday for the first time that federal pandemic aid to households and businesses had limits as the Bank of Canada chief warned of a "long slog" toward a post-coronavirus economic recovery.
Canada's GDP data for August is due on Friday. Analysts expect the economy to have expanded by 0.9% from July.
Canadian government bond yields were mixed across a flatter curve. The 10-year eased about half a basis point to 0.590%.
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