March 28, 2019 / 8:54 PM / 7 months ago

CANADA FX DEBT-C$ hits near 3-week low as investors buy greenbacks

 (Adds dealer quote and details throughout, updates prices)
    * Canadian dollar weakens 0.2 percent against the greenback
    * Loonie touches its weakest since March 8 at 1.3451
    * Price of U.S. oil falls 0.2 percent
    * Canadian bond prices fall across the yield curve

    By Fergal Smith
    TORONTO, March 28 (Reuters) - The Canadian dollar weakened
on Thursday to a nearly three-week low against its U.S.
counterpart as oil prices fell and investors flocked to the
greenback.
    The price of oil, one of Canada's major exports, dipped
after U.S. President Donald Trump called for OPEC to boost crude
output in an effort to lower prices that were headed for their
best quarterly gains in a decade. U.S. crude oil futures       
settled 0.2 percent lower at $59.30 a barrel.                 
    The U.S. dollar        rose as other currencies were
weakened by dovish signals from central banks.             
    "It's the 'big dollar' all the time," said Michael Goshko,
corporate risk manager at Western Union Business. "Data in the
U.S. is the cleanest dirty shirt in the pile. There are signs of
global slowing all around, but the last one to be hitting the
skids seems to be the U.S."
    Markets have been on edge after yield curves in the United
States and Canada inverted last week for the first time in more
than a decade, potentially signaling more gloomy economic
prospects.
    Investors trying to work out whether the inversion of the
U.S. yield curve signals a looming recession may find clues -
but little comfort - in the Canadian bond market, which is less
distorted by central bank buying.             
    At 4:14 p.m. (2014 GMT), the Canadian dollar          was
trading 0.2 percent lower at 1.3440 to the greenback, or 74.40
U.S. cents. The currency touched its weakest level since March 8
at 1.3451.    
    The decline for the loonie came ahead of data on Friday that
is expected to show no growth in Canada's economy for the month
of January.
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 6.5 Canadian cents to yield 1.493 percent and the 10-year
            declined 21 Canadian cents to yield 1.556 percent.
    On Wednesday, the 10-year yield hit its lowest intraday
since June 2017 at 1.508 percent.    

 (Reporting by Fergal Smith; Editing by David Gregorio and Peter
Cooney)
  
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