C$ weakens as rise in global bond yields spooks investors

CANADA-FOREX/:CANADA FX DEBT-C$ weakens as rise in global bond yields spooks investors

Reuters
First Published29 May 2024
Mint Default Caption
Mint Default Caption

*

Canadian dollar falls 0.5% against the greenback

*

Trades in a range of 1.3642 to 1.3717

*

Price of U.S. oil decreases 0.7%

*

10-year yield rises to near 4-week high

By Fergal Smith

TORONTO, May 29 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday as concern that central banks could leave interest rates at elevated levels longer than previously thought raised demand for the safe-haven greenback.

The loonie was trading 0.5% lower at 1.3710 to the U.S. dollar, or 72.94 U.S. cents, after moving in a range of 1.3642 to 1.3717.

"Really, it's a (U.S.) dollar move. The Canadian dollar has fallen today in line with the rest of the G10 complex," said Erik Nelson, a currency strategist at Wells Fargo in London.

"Equities are off their (recent) highs, and rates in general are creeping up again, so concerns are resurfacing over the higher for longer theme and central banks not cutting as much as thought."

U.S. government bond yields pushed to a near four-week peak, lifting their global counterparts and pressuring stocks, as data sowed new doubts about the timing and extent of Federal Reserve rate cuts.

The U.S. dollar rose against a basket of major currencies and the price of oil, one of Canada's major exports, gave back some recent gains. U.S. crude oil futures were down 0.7% at $79.26 a barrel.

Investors were awaiting Canadian gross domestic product data on Friday, expected to show the economy expanding at an annualized rate of 2.2% in the first quarter.

The data could provide clues on the timing of expected Bank of Canada interest rate cuts. The swaps market sees a 60% chance the BoC begins an easing campaign at a policy decision next Wednesday.

Canadian government bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 5.9 basis points at 3.761%, after earlier touching its highest level since May 2 at 3.782%. (Reporting by Fergal Smith; Editing by Alistair Bell)

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeEconomyC$ weakens as rise in global bond yields spooks investors

Most Active Stocks

Bandhan Bank

205.25
06:29 AM | 20 JUN 2024
6.4 (3.22%)

Tata Steel

182.50
06:29 AM | 20 JUN 2024
2.45 (1.36%)

Bharat Electronics

312.35
06:29 AM | 20 JUN 2024
3.05 (0.99%)

Indian Oil Corporation

169.10
06:29 AM | 20 JUN 2024
2.3 (1.38%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Gujarat State Fertilizers & Chemicals

260.60
06:25 AM | 20 JUN 2024
20.8 (8.67%)

Deepak Fertilisers & Petrochemicals Corporation

696.15
06:25 AM | 20 JUN 2024
50.95 (7.9%)

TVS Supply Chain Solutions

185.85
06:25 AM | 20 JUN 2024
11.7 (6.72%)

Vedanta

476.40
06:25 AM | 20 JUN 2024
27.95 (6.23%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    72,995.00-286.00
    Chennai
    73,353.00642.00
    Delhi
    73,210.00-285.00
    Kolkata
    72,995.00-571.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanGet App