AIRLINK 69.92 Increased By ▲ 4.72 (7.24%)
BOP 5.46 Decreased By ▼ -0.11 (-1.97%)
CNERGY 4.50 Decreased By ▼ -0.06 (-1.32%)
DFML 25.71 Increased By ▲ 1.19 (4.85%)
DGKC 69.85 Decreased By ▼ -0.11 (-0.16%)
FCCL 20.02 Decreased By ▼ -0.28 (-1.38%)
FFBL 30.69 Increased By ▲ 1.58 (5.43%)
FFL 9.75 Decreased By ▼ -0.08 (-0.81%)
GGL 10.12 Increased By ▲ 0.11 (1.1%)
HBL 114.90 Increased By ▲ 0.65 (0.57%)
HUBC 132.10 Increased By ▲ 3.00 (2.32%)
HUMNL 6.73 Increased By ▲ 0.02 (0.3%)
KEL 4.44 No Change ▼ 0.00 (0%)
KOSM 4.93 Increased By ▲ 0.04 (0.82%)
MLCF 36.45 Decreased By ▼ -0.55 (-1.49%)
OGDC 133.90 Increased By ▲ 1.60 (1.21%)
PAEL 22.50 Decreased By ▼ -0.04 (-0.18%)
PIAA 25.39 Decreased By ▼ -0.50 (-1.93%)
PIBTL 6.61 Increased By ▲ 0.01 (0.15%)
PPL 113.20 Increased By ▲ 0.35 (0.31%)
PRL 30.12 Increased By ▲ 0.71 (2.41%)
PTC 14.70 Decreased By ▼ -0.54 (-3.54%)
SEARL 57.55 Increased By ▲ 0.52 (0.91%)
SNGP 66.60 Increased By ▲ 0.15 (0.23%)
SSGC 10.99 Increased By ▲ 0.01 (0.09%)
TELE 8.77 Decreased By ▼ -0.03 (-0.34%)
TPLP 11.51 Decreased By ▼ -0.19 (-1.62%)
TRG 68.61 Decreased By ▼ -0.01 (-0.01%)
UNITY 23.47 Increased By ▲ 0.07 (0.3%)
WTL 1.34 Decreased By ▼ -0.04 (-2.9%)
BR100 7,394 Increased By 99.2 (1.36%)
BR30 24,121 Increased By 266.7 (1.12%)
KSE100 70,910 Increased By 619.8 (0.88%)
KSE30 23,377 Increased By 205.6 (0.89%)

TORONTO: The Canadian dollar edged higher against its US counterpart on Thursday as the Bank of Canada's more hawkish stance helped underpin bond yields, but gains for the currency were capped by volatility in oil prices.

The loonie was trading 0.1pc higher at 1.2344 to the greenback, or 81.01 US cents, adding to the previous day's rally. It traded in a range of 1.2331 to 1.2382.

"Given the move in rates, that rate differential seems to be driving outperformance of the CAD more than oil or other things," said Tom O'Gorman, director of fixed income at Franklin Templeton Canada.

The gap between Canadian and US 2-year yields widened to as much as 57 basis points in favor of the Canadian bond on Wednesday, its widest since 2014.

The move came after the Bank of Canada signaled it could hike interest rates three months earlier than previously thought, partly due to strong employment gains.

Canadian dollar rises on positive investor sentiment

Canadian payroll employment increased by 59,700 in August, driven by gains in the services-producing sector in Ontario and Quebec, Statistics Canada said on Thursday.

Canadian workers are fast becoming hot commodities in a tight labor market and companies are increasingly forced to raise wages to fill jobs, a factor likely to complicate the Bank of Canada's efforts to tame inflation.

The price of oil, one of Canada's major exports, settled 0.2pc higher at $82.81 a barrel. Earlier, it hit a two-week low as Iran said talks with world powers on its nuclear programme would resume by the end of November.

Canadian government bond yields were mixed across a steeper curve.

The 2-year yield touched its highest level since February 2020 at 1.262pc before sliding to 0.999pc, down 7.7 basis points on the day, while the 10-year yield was up 3.5 basis points at 1.654pc.

Comments

Comments are closed.