Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

The Canadian dollar edged higher against its U.S. counterpart on Tuesday, clawing back some of the prior day’s decline as investors bet that Canada’s economy would hold up better than some others as the coronavirus spreads.

At 3:14 p.m., the Canadian dollar was trading 0.1 per cent stronger at 1.3275 to the greenback, or 75.33 U.S. cents. The currency, which on Monday hit a near two-week low at 1.3308, traded in a range of 1.3267 to 1.3306.

“Given the fact that commodities are getting crushed, particularly oil, and the economic outlook is certainly being put into question, the fact that the Canadian dollar has remained firmly within a 1.32 to 1.3330 range is pretty remarkable,” said Michael Goshko, corporate risk manager at Western Union Business Solutions.

Story continues below advertisement

Earlier this month, the commodity-linked loonie touched its weakest level since October at 1.3330.

“So far we are among the least dirty shirts in the laundry, because we have certainly seen weakness in Japan and in Europe,” Goshko said.

Economic growth in the euro zone was barely positive even before the coronavirus outbreak threatened to disrupt the global economy, data this month showed, while the U.S. dollar weakened on Tuesday as expectations grew that the Federal Reserve would cut interest rates this year to relieve pressure on the economy caused by the virus.

Canada’s fourth quarter GDP data is due on Friday which could help guide expectations for the Bank of Canada interest rate outlook. Last month opened the door to a cut should a recent slowdown in domestic growth persist.

Chances it would ease as soon as next week have climbed to nearly 30 per cent from 10 per cent last Wednesday. Bank of Canada Deputy Governor Tim Lane made no mention of future rate moves in a speech.

The price of oil, one of Canada’s major exports, fell nearly 3 per cent to $49.91 a barrel and U.S. stocks tumbled, with the selloff accelerating after the U.S. Centers for Disease Control and Prevention said Americans should begin to prepare for community spread of the new coronavirus.

Canadian government bond yields fell across the yield curve. The 5-year yield was down 1.8 basis points at 1.198 per cent, having touched its lowest since Sept. 5 at 1.182 per cent.

Story continues below advertisement

The gap between Canada’s 5-year yield and it U.S. equivalent moved 5.1 basis points to a spread of 4.9 basis points in favor of the Canadian bond, its highest since September 2017.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies