C$ falls with lower commodity prices, trims losses
TORONTO (Reuters) - The Canadian dollar weakened against a broadly stronger greenback on Monday, although it trimmed some losses in tandem with crude oil after Saudi Arabia reiterated its willingness to work with other oil producers to stabilize prices.
Rising expectations that the Federal Reserve will begin tightening as early as next month helped support the U.S. dollar and led to further volatility in commodity markets.
U.S. crude CLc1 prices were down 1.22 percent to $41.39 a barrel, while Brent crude LCOc1 lost 0.13 percent to $44.60.[O/R]
At 9:37 a.m. EST (1437 GMT), the Canadian dollar CAD=D4 was trading at C$1.3373 to the greenback, or 74.78 U.S. cents, weaker than Friday's official close of C$1.3345, or 74.93 U.S. cents.
The currency's strongest level of the session was C$1.3326, while its weakest level was C$1.3436, having moved back in sight of the 11-year low hit in September at 1.3457.
Against the euro, the Canadian dollar was 0.1 percent lower at C$1.4225 after business activity in the euro zone picked up at its fastest pace since mid-2011.
A disappointing drop in September retail sales weighed on the Canadian dollar on Friday.
Also Friday, data released by the U.S. Commodity Futures Trading Commission revealed that speculators have increased bearish bets on the Canadian dollar.
Canadian government bond prices were lower across the maturity curve, with the two-year CA2YT=RR price down 2.5 Canadian cents to yield 0.63 percent and the benchmark 10-year CA10YT=RR falling 14 Canadian cents to yield 1.64 percent. Continued...