TORONTO: The Canadian dollar weakened against its US counterpart on Wednesday as oil prices fell and a 13-month high for the greenback pressured emerging markets and global stocks.
Stocks have been volatile in recent days due to the prospect of an economic crisis in Turkey spreading to other emerging market countries, particularly those that borrow in US dollars.
The greenback rose against a basket of major currencies as data showed US retail sales grew more than forecast in July.
Canada exports many commodities and runs a current account deficit so its economy could be hurt if the flow of trade or capital slows.
The price of oil, one of Canada’s major exports, was pressured by a weakening global economic growth outlook and data showing rising US crude inventories.
US crude oil futures were down 1.1 percent at $66.31 a barrel. At 9:21 a.m. EDT (1321 GMT), the Canadian dollar
was trading 0.4 percent lower at C$1.3117 to the greenback, or 76.24 US cents. The currency, which touched a near 3-week low of C$1.3179 on Monday, traded in a range of C$1.3051 to
C$1.3121.
Resales of Canadian homes rose 1.9 percent in July from June, notching the third straight monthly rise but remaining below the highs seen in recent years, the Canadian Real Estate Association said.
Canada’s manufacturing sales data for June is due on Thursday and the July inflation report on Friday.
Canadian government bond prices were higher across a flatter yield curve in sympathy with US Treasuries as government bonds benefited from safe-haven demand.
Source: Brecorder
