Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
save over 85%
per week for 24 weeks
Welcome to
super saver spring
per week
for 24 weeks
// //

The Canadian dollar fell to a nearly 3-week low against its broadly firmer U.S. counterpart on Monday, pressured by weaker-than-expected domestic data and dovish comments over the weekend from Bank of Canada Governor Stephen Poloz.

Poloz said he expects the inflation rate to be above the central bank’s two per cent target in 2018, but he is comfortable with that as long as the long-term trend is steady, according to media reports published on Sunday.

“He emphasized he won’t be in a rush to hike rates just because inflation is ticking higher,” said Adam Button, a currency analyst at ForexLive in Montreal.

Story continues below advertisement

Poloz’s comments come after some recent data which has pointed to a slowdown in the domestic economy.

Canadian wholesale trade decreased by 0.8 per cent in February from January, amid falling sales in the miscellaneous and motor vehicles and parts subsectors, Statistics Canada said on Monday. Analysts had expected a 0.5 per cent increase.

“The market is more excited about Fed rate hikes than Bank of Canada rate hikes and the bond market is really screaming that at the moment,” Button said.

The U.S. dollar rallied to a seven-week high on Monday as investors bought the greenback on the rise in the 10-year U.S. Treasury yield toward the psychologically important 3 per cent level.

At 3:11 p.m. EDT, the Canadian dollar was trading 0.6 per cent lower at $1.2848 to the greenback, or 77.83 U.S. cents. The currency touched its weakest level since April 3 at $1.2858.

The price of oil, one of Canada’s major exports, turned positive in volatile trade. U.S. crude oil futures settled 0.4 per cent higher at $68.64 a barrel.

Canadian government bond prices were mixed across the yield curve, with the two-year up 2 cents to yield 1.916 per cent and the 10-year falling 10 cents to yield 2.349 per cent.

Story continues below advertisement

The 10-year yield touched its highest intraday since Feb. 16 at 2.365 per cent.

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 If you want to write a letter to the editor, please forward to
Comments are closed

We have closed comments on this story for legal reasons or for abuse. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

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