* Canadian dollar gains 0.1% against the greenback * Trades in a range of 1.3356 to 1.3439
*
Canadian dollar gains 0.1% against the greenback
*
Trades in a range of 1.3356 to 1.3439
*
Price of U.S. oil settles 3.7% lower
*
Canadian yield curve inverts further
TORONTO, Nov 23 (Reuters) – The Canadian dollar edged
higher against its U.S. counterpart on Wednesday after the
Federal Reserve signaled that the pace of interest rate hikes
could slow, but gains were capped by tumbling oil prices.
The loonie was trading 0.1% higher at 1.3360 to the
greenback, or 74.85 U.S. cents, after moving in a range of
1.3356 to 1.3439. Other G10 currencies had stronger gains.
“I think we are inching back to session highs because there
were some dovish soundbites in the FOMC minutes,” said Erik
Bregar, director, FX & precious metals risk management at Silver
Gold Bull. “If it wasn’t for oil we would be much higher.”
A “substantial majority” of policymakers at the Fed’s
meeting early this month agreed it would “likely soon be
appropriate” to slow the pace of interest rate hikes as debate
broadened over the implications of the U.S. central bank’s rapid
tightening of monetary policy.
The price of oil, one of Canada’s major exports, settled
3.7% lower at $77.94 a barrel as the Group of Seven nations
considered a price cap on Russian oil above the current market
level and as gasoline inventories in the United States built by
more than analysts’ expected.
Bank of Canada Governor Tiff Macklem and Senior Deputy
Governor Carolyn Rogers are due to appear before the House of
Commons Standing Committee on Finance at 4:30 p.m. ET (2130
GMT).
On Tuesday, Rogers said that higher interest rates are
starting to slow the Canadian economy.
Canadian government bond yields were mixed across a more
deeply inverted yield curve.
The 10-year eased 4.5 basis points to 2.992%,
while it traded 5 basis points further below the 2-year rate to
a gap of 94.1 basis points. That was its largest in Refinitiv
data going back to 1994.
(Reporting by Fergal Smith; Editing by Jonathan Oatis and
Andrea Ricci)
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