Canadian dollar slips as hedge fund jitters underpin the greenback
Reuters
Published Mar 29, 2021 16:19
Updated Mar 29, 2021 16:30
By Fergal Smith
TORONTO (Reuters) - The Canadian dollar edged lower against its broadly stronger U.S. counterpart on Monday as the default of a U.S. hedge fund weighed on investor sentiment, offsetting higher oil prices.
The loonie was trading 0.1% lower at 1.2585 to the greenback, or 79.46 U.S. cents, having traded in a range of 1.2571 to 1.2626. Last Thursday, it touched a two-week low at 1.2628.
There was "a little bit of movement towards a stronger U.S. dollar, largely driven by some of this contagion risk in equity markets," said Rahim Madhavji, president at KnightsbridgeFX.com.
U.S. bank shares fell amid warnings of potential losses from the hedge fund's default on margin calls, while the safe-haven U.S. dollar notched a four-month high against a basket of major currencies.
Still, the loonie has been the top performing G10 currency since the start of the year, with a gain of 1.2%.
Domestic economic stimulus and higher commodity prices are among the longer-term themes supportive of the loonie, Madhavji said.
U.S. crude prices settled nearly 1% higher at $61.56 a barrel after Reuters reported that Russia would support stable oil output from OPEC+ ahead of a meeting with the producer group later this week. Oil is one of Canada's major exports.
Canadian consumer confidence rose in March by the most since last June, data from the Conference Board of Canada, a research organization, showed.
Canada's GDP data for January, due on Wednesday, could guide expectations on the Bank of Canada policy outlook. Strategists say the central bank could reduce its bond purchases in April.
Canadian government bond yields rose across much of a steeper curve in tandem with U.S. Treasuries. The 10-year climbed 3.8 basis points to 1.539%, but holding well below the 14-month high notched earlier this month at 1.677%.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.