Skip to main content

Market News Canadian dollar hits seven-week low as oil falls, greenback climbs

The Canadian dollar weakened to a nearly seven-week low against its U.S. counterpart on Tuesday, with the currency breaking out of its recent holding pattern as oil prices fell and the greenback broadly gained.

At 4 p.m. EST (2000 GMT), the Canadian dollar was trading 0.5 percent lower at $1.2952 to the greenback, or 77.21 U.S. cents.

“It’s a big dollar move,” said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. “We had resistance right around 1.2900. When we broke that we nearly got to 1.3000.”

Story continues below advertisement

The currency hit its weakest level since March 21 at $1.2998, while the U.S. dollar surged to a 2018 high against a basket of major currencies.

The price of oil, one of Canada’s major exports, recouped some losses after U.S. President Donald Trump confirmed the U.S. will withdraw from the Iran nuclear deal, in a volatile session in which prices slumped as much as 4 percent earlier in the day.

U.S. crude oil futures settled $1.67 lower at $69.06 a barrel.

Losses for the loonie came as investors weighed prospects for the North American Free Trade Agreement (NAFTA).

Canadian, Mexican and U.S. officials hailed progress on revamping NAFTA as efforts focused on crafting new rules for the auto sector, but there was no sign of a major breakthrough.

Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year dipped 3.5 Canadian cents to yield 1.934 percent and the 10-year declined 18 Canadian cents to yield 2.348 percent.

Canadian housing starts declined in April to a seasonally adjusted annual rate of 214,379 units as builders responded to slowing sales in Toronto, Canada’s largest city, data from the Canada Mortgage and Housing Corporation showed on Tuesday.

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 .

Discussion loading ...

Cannabis pro newsletter