AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Markets

Canadian dollar drops by most in 6 weeks as greenback rallies

  • Still, the Bank of Canada is seen tapering its asset purchase program again next quarter amid expectations for a robust economic recovery, a Reuters poll showed.
Published June 4, 2021

TORONTO: The Canadian dollar fell to a six-day low against its broadly stronger US counterpart on Thursday, as US economic data reinforced signs that the world's largest economy was on track to recover from the COVID-19 pandemic.

The loonie, which has been on a tear this year because of higher commodity prices and the Bank of Canada's more hawkish stance, was trading 0.6% lower at 1.2106 to the greenback, or 82.60 US cents, its biggest decline since April 20.

It touched its weakest intraday level since last Friday at 1.2120.

"Today has been all about the (US) dollar," said Simon Harvey, senior FX market analyst for Monex Europe and Monex Canada. "With little economic releases outside of the US, the loonie has been entangled in the broad dollar move."

The US dollar rose against a basket of major currencies as data showed US private-sector employment rising more than expected in May. A strong rebound in the US economy threatens to derail the assumption that interest rates will stay low for a long time.

The US and Canadian employment reports for May are due on Friday. Economists expect the data to show Canadian employment falling by 20,000 after a plunge of 207,000 in April. Some provinces went into lockdown in April to curb a harsh third wave of the COVID-19 pandemic.

Still, the Bank of Canada is seen tapering its asset purchase program again next quarter amid expectations for a robust economic recovery, a Reuters poll showed.

Oil, one of Canada's major exports, touched its highest level since October 2018 at $69.40 a barrel before settling 2 cents lower at $68.81 a barrel.

Canadian government bond yields were higher across much of a steeper curve, tracking the move in US Treasuries. The 10-year was up 2.2 basis points at 1.517%.

Comments

Comments are closed.