Skip to main content

The Canadian dollar fell to a four-week low against its U.S. counterpart on Tuesday before paring its decline, as Bank of Canada Governor Stephen Poloz said the outlook for the domestic economy is good despite the overhang of high household debt.

At 4 p.m. EDT, the Canadian dollar was trading 0.1 per cent lower at $1.2860 to the greenback, or 77.76 U.S. cents.

The currency touched its weakest level since April 3 at $1.2914 as the U.S. dollar climbed to a nearly four-month high against a basket of major currencies.

Story continues below advertisement

Poloz said there is good reason to believe the central bank can manage the risks of Canada’s high household debt, even as he signalled that interest rate hikes will continue, increasing the cost of that debt.

Canada’s economy grew 0.4 per cent in February, Statistics Canada said, a sign that first-quarter growth could be stronger than the Bank of Canada is predicting.

“The CAD is outperforming on the crosses and that is a reflection of somewhat better data and oil prices ticking up again,” said Shaun Osborne, chief currency strategist at Scotiabank.

The loonie touched its strongest against the euro since Feb. 9 at $1.5396.

U.S. crude oil futures settled 1.9 per cent lower at $67.25 a barrel. Still, oil has climbed about 16 per cent since February.

Canada will push for a permanent exemption from U.S. steel and aluminum tariffs but the U.S. administration’s decision to postpone them is a “step forward,” Canadian Foreign Minister Chrystia Freeland said.

Canadian government bond prices were lower across the yield curve, with the two-year down 8 cents to yield 1.935 per cent and the 10-year falling 34 cents to yield 2.347 per cent.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
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 ...

Cannabis pro newsletter