(Adds strategist quote and details throughout; updates prices)*Canadian dollar weakens 0.1% against the greenback*Trades in a range of 1.3761 to 1.383
(Adds strategist quote and details throughout; updates prices)
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Canadian dollar weakens 0.1% against the greenback
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Trades in a range of 1.3761 to 1.3830
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Price of U.S. oil settles 2.3% lower
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10-year yield pulls back from highest in nearly four months
By Fergal Smith
TORONTO, Oct 12 (Reuters) – The Canadian dollar edged lower against its U.S. counterpart on Wednesday, moving closer to its weakest level in over two years, as oil prices fell and investors weighed data showing U.S. producer prices climbed more than expected in September.
The loonie was down 0.1% at 1.3812 to the greenback, or 72.40 U.S. cents, after trading in a range of 1.3761 to 1.3830. On Tuesday, the currency touched its weakest intraday level since May 2020 at 1.3855.
The U.S. data showed that “inflation remains stubbornly high, keeping the pressure on central banks to remain hawkish,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
U.S. producer prices rose at an annual rate of 8.5% in September, supporting bets for more jumbo-sized interest rate hikes by the Federal Reserve.
Investors have worried that the pace of central bank tightening could tip some major economies into a recession. Canada is a major producer of oil, including commodities, so its economy is particularly sensitive to the global growth outlook.
U.S. crude oil futures fell for a third day, settling 2.3% lower at $87.27 a barrel, as a stronger U.S. dollar and worries about weaker demand offset supply concerns.
Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries following the release of minutes from the Fed’s latest policy meeting in September.
The 10-year eased 4.7 basis points to 3.432%, pulling back from its highest level since June 16 earlier in the session at 3.536%. (Reporting by Fergal Smith; editing by Jonathan Oatis)
finance.yahoo.com