TORONTO: The Canadian dollar edged lower against its US counterpart on Tuesday as equity markets globally gave back some of the previous day’s rally and a preliminary domestic estimate showed manufacturing sales climbing in April.
Shares slid worldwide as fears about weak earnings and slowing economic growth punctured the recent mini-rally.
Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to prospects for the global economy.
Oil dipped as concerns over a possible recession and China’s COVID-19 curbs balanced tight global supply and an expected pick-up in demand during the US summer driving season.
US crude prices eased 0.1% to $110.19 a barrel, while the Canadian dollar was trading 0.2% lower at 1.2790 to the greenback, or 78.19 US cents. It touched its strongest intraday level since May 5 at 1.2762.
Canadian factory sales rose 1.6% in April from March, largely driven by higher sales of petroleum and coal products, Statistics Canada said in a flash estimate.