Skip to main content

The Canadian dollar strengthened against its U.S. counterpart on Monday, before giving back some of its early gains, as oil prices soared following a weekend attack on Saudi Arabian oil facilities.

U.S. crude oil futures settled 14.7 per cent higher at $62.90 a barrel, the largest one-day percentage gain since December 2008, after an attack on sites run by state-owned Saudi Aramco halved the kingdom’s oil production. Oil is one of Canada’s major exports.

“I would say the reaction of the loonie has been in line with the rest of FX, whereby we saw some strengthening in the oil currencies, but it has been pretty tame,” said Alvise Marino, a foreign exchange strategist at Credit Suisse in New York.

Story continues below advertisement

“Markets are in a wait and see mode to see what the response to this Aramco attack is.” Marino added.

U.S. President Donald Trump said it looked like Iran was responsible for attack over the weekend, but he was in no rush to respond and was still trying to find out who was behind it.

At 3:32 p.m. (1932 GMT), the Canadian dollar was trading 0.4 per cent higher at 1.3240 to the greenback, or 75.53 U.S. cents. The Russian ruble , another oil-linked currency, rose about 0.6 per cent, while the Norwegian krone was up about 0.4 per cent.

The loonie, which on Friday hit its weakest intraday level since Sept. 4 at 1.3291, traded in a range of 1.3208 to 1.3271.

The spike in crude prices came as investors awaited the outcome of the Federal Reserve’s next policy meeting on Wednesday. The Fed is widely expected to ease interest rates and signal its future policy path.

Meanwhile, Canadian homes sales rose 1.4 per cent in August from July, the sixth consecutive month of increased activity, according to the Canadian Real Estate Association.

Separate data, from Statistics Canada, showed that foreign investors reduced their holdings of Canadian securities by C$1.2 billion in July, while Canadian investment in foreign securities increased by C$12.5 billion.

Story continues below advertisement

Canada’s inflation report for August is due on Wednesday, which could help guide expectations for the Bank of Canada’s interest rate outlook.

Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The 10-year

rose 34 Canadian cents to yield 1.475 per cent.

On Friday, the 10-year yield touched its highest since July 19 at 1.521 per cent.

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
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