Skip to main content

The Globe and Mail

Canadian dollar adds to week’s losses even as oil climbs

A loonie is photographed in this file photo.

Mark Blinch/Reuters

The Canadian dollar edged lower against its U.S. counterpart on Wednesday, as investors continued to take profit after recent gains even as the greenback broadly fell and oil prices rose.

At 9:33 a.m. EST, the Canadian dollar was trading at $1.2488 to the greenback, or 80.08 U.S. cents, down 0.2 per cent. The currency traded in a range of $1.2428 to $1.2494.

The loonie has retreated after hitting its strongest in three months on Friday at $1.2355 as investors await a Bank of Canada interest rate decision next week.

Story continues below advertisement

Stronger-than-expected domestic jobs data on Friday and a business survey on Monday that showed optimism have helped lift the chances of a rate hike on Jan. 17 to about 80 per cent.

Losses for the loonie come amid increased worries that the North American Free Trade Agreement could be scrapped.

Canada sends about 75 per cent of its exports to the United States.

The price of oil, one of Canada's major exports, reached new multi-year highs as OPEC-led production cuts and healthy demand helped balance the market. U.S. crude prices were up 0.7 per cent at $63.38 a barrel.

The U.S. dollar slumped after a report that China was ready to slow or halt its U.S. Treasury purchases, with the greenback posting its biggest single-day drop against the Japanese yen in nearly eight months.

The value of Canadian building permits fell by 7.7 per cent in November from October, Statistics Canada said. Analysts surveyed by Reuters had expected a decrease of 0.3 per cent.

Canadian government bond prices were lower across much of a steeper yield curve in sympathy with U.S. Treasuries.

Story continues below advertisement

The 10-year, which fell 13 cents to yield 2.222 per cent, touched its highest intraday yield since September 2014 at 2.231 per cent.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
As of December 20, 2017, we have temporarily removed commenting from our articles as we switch to a new provider. We are behind schedule, but we are still working hard to bring you a new commenting system as soon as possible. If you are looking to give feedback on our new site, please send it along to If you want to write a letter to the editor, please forward to