Nov 15, 2024 (MENAFN via COMTEX) --
(MENAFN - Live Mint) *
Canadian dollar weakens 0.3% against the greenback
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Touches its weakest since May 2020 at 1.4039
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Price of U.S. oil increases 0.5%
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Bond yields ease across a flatter curve
By Fergal Smith
TORONTO, Nov 14 (Reuters) - The Canadian dollar weakened further beyond a key psychological level against its U.S. counterpart on Thursday, pressured by broad-based gains for the American currency and the potential for U.S. trade tariffs to hurt the domestic economy.
The loonie was trading 0.3% lower at 1.4035 to the U.S. dollar, or 71.25 U.S. cents, its fifth straight day of declines.
The currency touched its weakest intraday level since May 2020 at 1.4039, after briefly moving past the 1.40 level on Wednesday.
"Currency forecasters have turned overwhelmingly bearish on the currency in recent months, with domestic weakness seen intersecting with U.S. outperformance and a constant drumbeat of trade threats to drive the exchange rate lower," Karl Schamotta, chief market strategist at Corpay, said in a note.
The U.S. Dollar continued its relentless march higher against a basket of major currencies as investors bet that higher trade tariffs and tighter immigration under the incoming Trump administration would fuel inflation, potentially slowing the Federal Reserve's interest rate cutting cycle.
Psychological levels such as the round number of 1.40 tend to be significant for market participants.
"We expect further (Canadian dollar) weakness, with technical indicators opening up an air pocket between 1.40 and 1.43, but remain wary of an overshoot," Schamotta said.
Canada sends about 75% of its exports to the United States, including oil, which could escape protectionist trade measures, according to participants in Canada's energy industry.
U.S. crude futures settled 0.4% higher at $68.70 a barrel, clawing back some recent declines for a third straight day.
Canadian bond yields moved lower across a flatter curve. The 10-year was down 5.7 basis points at 3.260%. (Reporting by Fergal Smith; Editing by Sandra Maler)
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COMTEX_459835801/2604/2024-11-15T08:28:23
