Canadian dollar weakens over 1% as oil prices slide
Reuters
Published Mar 30, 2020 08:49
TORONTO (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Monday as the price of oil fell and the greenback climbed against a basket of major currencies, with the loonie giving up some of the previous week's sharp gains.
At 8:25 a.m. (1225 GMT), the Canadian dollar cad=d4 was trading 1.2% lower at 1.4154 to the greenback, or 70.65 U.S. cents. The currency, which on Friday touched an 11-day high at 1.3922, traded in a range of 1.4000 and 1.4168. /cad=d4
Last week, the loonie rallied 3.1%, its biggest weekly gain since October 2009.
U.S. crude oil futures (CLc1) on Monday were down 6% at $20.21 a barrel, while the U.S. dollar (DXY) snapped a week of declines as investors braced for prolonged uncertainty and governments tightened lockdowns to fight the coronavirus.
Canada will not allow anyone displaying symptoms of the COVID-19 respiratory illness to board domestic flights or inter-city passenger trains, Prime Minister Justin Trudeau said on Saturday, the latest travel restriction aimed at curbing the coronavirus outbreak.
On Friday, Canada said it will cover 75% of wages for small businesses and the Bank of Canada cut its key interest rate to 0.25%, the lowest level in a decade, as officials sought to limit layoffs and bolster an economy hard hit by the coronavirus pandemic.
The central bank also launched its first-ever quantitative easing program, saying it would buy government and commercial debt.
Canadian bond yields fell across the curve, with the 10-year (CA10YT=RR) down 7.4 basis points at 0.662%.
Canada's GDP report for January is due on Tuesday.
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.