Canadian dollar hits 6-day low as oil prices fall
- Canadian dollar weakens 0.5% against the greenback.
- Loonie trades in a range of 1.2043 to 1.2124.
- Price of US oil falls nearly 1%.
- Canadian 10-year yield hits its lowest level since April 15.
TORONTO: The Canadian dollar weakened on Wednesday for a second day against its US counterpart as oil prices fell and the greenback broadly climbed, while investors awaited comments from a senior Bank of Canada official.
US crude prices were down nearly 1% at $65.44 a barrel as the prospect of returning Iranian oil offset optimism about improving US fuel demand, while the US dollar rebounded from its weakest level in nearly five months against a basket of major currencies. The Canadian dollar was trading 0.5% lower at 1.2120 to the greenback, or 82.51 US cents, having touched its weakest since last Thursday at 1.2124.
On May 18, the loonie touched its strongest level in six years at 1.2013, bolstered by a recent surge in commodity prices and more hawkish guidance on the interest rate outlook from the Bank of Canada.
BoC Deputy Governor Timothy Lane is due to take part in a panel discussion on "The Future of Digital Currencies in Canada" at 1 p.m. ET (1700 GMT).
Canadian government bond yields eased across the curve. The 10-year hit its lowest level since April 15 at 1.444% before rebounding to 1.452%, down nearly one basis point on the day.
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