Skip to main content

Market News Canadian dollar rises from seven-week low as oil surge offsets NAFTA uncertainty

The Canadian dollar strengthened against its U.S. counterpart on Wednesday, rebounding from a nearly seven-week low the day before, as a jump in oil prices countered uncertain prospects for talks on revamping the NAFTA trade pact.

At 4 p.m. (2000 GMT), the Canadian dollar was trading 0.8 percent higher at $1.2856 to the greenback, or 77.78 U.S. cents.

The currency traded in a range of $1.2826 to $1.2975. On Tuesday, it touched its weakest level since March 21 at $1.2998.

Story continues below advertisement

“There is still NAFTA uncertainty lingering, but the higher oil prices are helping the Canadian dollar,” said Eric Viloria, a currency strategist at Wells Fargo.

U.S. crude oil futures settled 3 percent higher after a bigger-than-expected drawdown in U.S. oil inventories extended gains from the U.S. decision to quit a nuclear deal with Iran.

Oil is one of Canada’s major exports.

Mexico has launched a counterproposal to U.S. demands to toughen automotive industry content rules under the North American Free Trade Agreement, officials said on Tuesday, as ministers again pushed for a deal to rework the 24-year-old accord.

Canada sends 75 percent of its exports to the United States. Its economy could benefit if a deal to revamp NAFTA is reached.

The value of Canadian building permits rose 3.1 percent in March, more than economists’ forecasts for a gain of 2.0 percent, on increased plans to build apartment buildings in the provinces of Quebec and British Columbia, data from Statistics Canada showed.

Canadian government bond prices were lower across a steeper yield curve as the yield on the benchmark U.S. government note rose back above the psychologically significant level of 3 percent.

Story continues below advertisement

Canada’s 10-year bond declined 33 cents to yield 2.391 percent. The yield touched its highest intraday level since Feb. 8 at 2.405 percent.

Canada’s jobs report for April is due on Friday.

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