August 6, 2019 / 2:20 PM / 3 months ago

CANADA FX DEBT-C$ holds near 6-week low amid escalating trade tensions

    * Canadian dollar trades near flat against the greenback
    * U.S. oil prices increase by 0.4%
    * Bond prices move higher across the yield curve

    TORONTO, Aug 6 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Tuesday, with the
currency hovering near a six-week low it hit on Friday as
investors worried about rising trade tensions between the United
States and China.
    A yearlong U.S.-China trade war has boiled over as
Washington accused Beijing of manipulating its currency after
China let the yuan drop to its lowest point in more than a
decade.             
    Canada exports many commodities, including oil, so its
economy could be hurt by an escalation of trade tensions.
    At 10:06 a.m. (1406 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3222 to the greenback, or 75.63
U.S. cents. The currency traded in a range of 1.3188 to 1.3236.
    On Friday, the currency hit its lowest intraday since June
20 at 1.3265.
    The loonie's six-week low on Friday came as data showed
Canadian exports fell by 5.1% in June, the first drop since
February.             
    Meanwhile, the price of oil rebounded slightly on Tuesday
from big falls in recent sessions amid escalating trade
tensions. U.S. crude oil futures        were up 0.4% at $54.88 a
barrel.             
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 16 Canadian cents to
yield 1.377% and the 10-year             rising 83 Canadian
cents to yield 1.289%.
     The gap between Canada's 2-year yield and its U.S.
equivalent narrowed by 9.6 basis points to a spread of 22.2
basis points in favor of the U.S. bond, the narrowest gap since
July 8.

 (Levent Uslu; editing by Jonathan Oatis)
  
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