Nov 08, 2024 (MENAFN via COMTEX) --
(MENAFN - Live Mint) *
Canadian dollar gains 0.6% against the greenback
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Trades in a range of 1.3851 to 1.3948
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Price of U.S. oil settles 0.9% higher
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Bond yields ease across the curve
By Fergal Smith
TORONTO, Nov 7 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as the Federal Reserve cut interest rates and investors grew less anxious about the prospect of tariffs disrupting Canada's economy.
The loonie was trading 0.6% higher at 1.3860 to the U.S. dollar, or 72.15 U.S. cents, after trading in a range of 1.3851 to 1.3948.
On Wednesday, the currency posted its biggest decline since April, falling 0.8%, as investors globally reacted to the outcome of the U.S. presidential election.
Republican President-elect Donald Trump has proposed sweeping tariffs on imported goods. Canada sends about 75% of its exports to the United States, including oil.
"We're in the post-election mode where the market says that Trump didn't really mean it when it came to tariffs," said Adam Button, chief currency analyst at ForexLive.
"In any election there's campaign rhetoric and there's actual policy and the market is navigating in that space right now and pricing in a Donald Trump that's similar to the first version."
The Fed cut interest rates by a quarter of a percentage point, adding to the half-percentage-point reduction the U.S. central bank delivered in September.
The Bank of Canada has also lowered borrowing costs. Canada's employment report for October, due on Friday, could guide expectations for further easing.
Economists project a jobs gain of 25,000, with the unemployment rate edging up to 6.6% from 6.5% in September.
The price of oil rose as U.S. drillers cut output while bracing for Hurricane Rafael. U.S. crude oil futures settled 0.9% higher at $72.36 a barrel.
Canadian government bond yields moved lower across the curve, tracking moves in U.S. Treasuries. The 10-year was down 7.5 basis points at 3.236%. (Reporting by Fergal Smith Editing by Marguerita Choy)
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COMTEX_459604108/2604/2024-11-08T10:41:36
