Canadian dollar loses some ground as greenback rebounds
- Canadian dollar weakens 0.3% against the greenback.
- Loonie had touched strongest since April 2018 at 1.2630.
- Price of US oil increases 0.2%.
- Canada's 10-year yield touches a three-week high at 0.767%.
TORONTO: The Canadian dollar fell against its broadly stronger US counterpart on Wednesday, pulling back from a near three-year high hit earlier in the day when markets priced in a Democrat win in the US Senate run-off election in Georgia.
The loonie was trading 0.3% lower at 1.2704 to the greenback, or 78.72 US cents. It touched its strongest intraday level since April 2018 at 1.2630 before turning lower.
On Tuesday, the loonie notched its biggest gain since June. US bond yields rose and tech stocks fell on Wednesday on the prospect of more stimulus and tougher regulation if Democrats take control of the US Senate following the Georgia election.
Canada sends about 75% of its exports to the United States, including oil.
Oil prices rose to their highest since late February after Saudi Arabia announced a big voluntary production cut and as an industry report showed US inventories fell last week.
US crude prices were up 0.2% at $50.05 a barrel, while the US dollar gained ground against a basket of major currencies, recovering from its lowest level in nearly three years.
Canadian government bond yields were higher across much of a steeper curve in sympathy with US Treasuries. The 10-year rose 3.7 basis points to 0.750%. It touched its highest since Dec. 16 at 0.767%.
Comments
Comments are closed for this article.