Canadian dollar drops for fourth day as stocks slide
TORONTO — The Canadian dollar weakened to
its lowest level in more than five weeks against its U.S.
counterpart on Monday, as investors worried about the global
economic outlook and awaited an influential central bank
conference this week.
The Canadian dollar was trading 0.4% lower at 1.3050
to the U.S. dollar, or 76.63 U.S. cents, its fourth straight day
of declines. The currency touched its weakest level since July
15 at 1.3061.
“Weaker stocks and softer oil prices remain headwinds for
the CAD, and while the BoC (Bank of Canada) policy backdrop
remains supportive in broad terms, we feel, there is little
opportunity for the CAD to differentiate itself from the USD
ahead of the key Jackson Hole event,” strategists at Scotiabank,
including Shaun Osborne, said in a note.
Equity markets globally fell and the U.S. dollar
rose against a basket of major currencies as fears mounted that
inflation-busting interest rate hikes in the United States and
Europe will weaken the global economy.
Federal Reserve Chair Jerome Powell is due to speak at the
Jackson Hole symposium in Wyoming on Friday, with expectations
growing of further rate hikes rather than a pivot to a more
Canada is a major producer of commodities, including oil, so
its currency tends to be sensitive to shifts in risk appetite.
U.S. crude oil futures settled 0.6% lower at $90.23 a
In economic news, Canadian new home prices increased 0.1% in
July from June, data from Statistics Canada showed. It was the
smallest increase since June 2020.
Canadian government bond yields were higher across the
curve, tracking the move in U.S. Treasuries. The 10-year
rose 7.4 basis points to 3.022%, its highest since
(Reporting by Fergal Smith; Editing by Paul Simao and Tomasz