Canadian dollar recovers from 6-day low as greenback slides By Reuters

© Reuters. FILE PHOTO: A Canadian dollar coin, commonly known as the “Loonie”, is pictured in this illustration picture taken in Toronto

By Fergal Smith

TORONTO (Reuters) – The Canadian dollar strengthened against its U.S. counterpart on Tuesday as oil rose and the greenback broadly declined, with the rebounding from an earlier six-day low.

The U.S. dollar fell against a basket of major currencies after data showed inflation making strong gains in March, though the rise was not expected to alter the Federal Reserve’s commitment to keeping interest rates at rock-bottom levels for years to come.

“It is more about greenback weakness as opposed to loonie strength,” said Erik Nelson, a currency strategist at Wells Fargo (NYSE:).

The closed at another record high as investors shook off concerns about the halt in Johnson & Johnson (NYSE:)’s COVID-19 vaccine rollout, while the price of oil, one of Canada’s major exports, was supported by strong Chinese import data.

prices settled up 0.8% at $60.18 a barrel.

The Canadian dollar was trading 0.3% higher at 1.2529 to the greenback, or 79.81 U.S. cents, having touched its weakest intraday level since last Wednesday at 1.2628.

Canada said it was talking to Johnson & Johnson about reports that its vaccine might cause rare blood clots, while Prime Minister Justin Trudeau said a surge in dangerous virus variants could threaten progress made so far.

Ottawa ran a budget deficit estimated at 17.5% of GDP in 2020-21 to support the economy during the coronavirus crisis. It is due next Monday to table its budget for the current fiscal year, which began this month.

Canadian government bond yields eased across the curve in sympathy with U.S. Treasuries. The 10-year fell about half a basis point to 1.504%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

error: Content is protected !!