Reuters logo
CANADA FX DEBT-C$ hits 1-week low vs firmer greenback as oil prices fall
August 30, 2017 / 1:46 PM / 3 months ago

CANADA FX DEBT-C$ hits 1-week low vs firmer greenback as oil prices fall

    * Canadian dollar at C$1.2573, or 79.54 U.S. cents
    * Loonie touches its weakest since Aug. 23 at C$1.2575
    * Bond prices little changed across the yield curve

    TORONTO, Aug 30 (Reuters) - The Canadian dollar weakened to
a one-week low against its U.S. counterpart on Wednesday, as
U.S. refinery shutdowns weighed on oil prices and the greenback
climbed against a basket of major currencies.
    The U.S. dollar        was broadly higher after U.S. data
indicated solid economic momentum, keeping the prospect of a
December interest rate increase alive.                          
    Prices of oil, one of Canada's major exports, slid as
flooding and damage from Tropical Storm Harvey shut over a fifth
of U.S. refineries, curbing demand for crude.             
    U.S. crude        prices were down 1.03 percent at $45.96 a
barrel.
    At 9:16 a.m. ET (1316 GMT), the Canadian dollar          was
trading at C$1.2573 to the greenback, or 79.54 U.S. cents, down
0.5 percent.
    The currency's strongest level of the session was C$1.2501,
while it touched its weakest since Aug. 23 at C$1.2575.
    Mexico sees a serious risk the United States will withdraw
from the North American Free Trade Agreement and is planning for
that eventuality, Economy Minister Ildefonso Guajardo said on
Tuesday.             
    Canada sends 75 percent of its exports to the United States
and could suffer badly if NAFTA is abandoned.   
    Canada's current account deficit widened to C$16.32 billion
in the second quarter from a revised C$12.92 billion deficit in
the first quarter as imports of goods saw the largest quarterly
growth in nine years, Statistics Canada said.             
    Canada's gross domestic product data for the second quarter
is due on Thursday. With a string of robust data during the
quarter, markets have almost fully priced in an October interest
rate hike by the Bank of Canada.           
    Canadian government bond prices were little changed across
the yield curve, with the two-year            price down 0.5
Canadian cent to yield 1.245 percent and the 10-year            
falling 3 Canadian cents to yield 1.839 percent.

 (Reporting by Fergal Smith; Editing by Chizu Nomiyama)
  
 

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below