June 30, 2022

C$ slips to 6-week low as COVID-19 worries bolster greenback

* Canadian dollar weakens 0.4% against the greenback

* Loonie hits a 6-week low at 1.3355

* Price of U.S. oil increases 0.2%

* Canada’s 10-year yield steadies at about 0.560%

TORONTO, Sept 23 (Reuters) – The Canadian dollar fell to a
six-week low against its broadly stronger U.S. counterpart on
Wednesday, as data showed euro zone business growth grinding to
a halt this month and as investors awaited details of Ottawa’s
spending proposals.

The loonie was trading 0.4% lower at 1.3351 to the
greenback, or 74.90 U.S. cents.

The currency touched its weakest intraday level since Aug.
11 at 1.3355, while the safe-haven U.S. dollar clung to
two-month highs against a basket of major currencies as concerns
about a second wave of coronavirus infections in Europe met weak
economic indicators.

Data showed the euro zone’s service industry slamming into
reverse. .

Canadian Prime Minister Justin Trudeau on Wednesday will
unveil what he says is a far-reaching plan to help the economy
recover from the coronavirus pandemic while ensuring efforts to
fight the outbreak do not falter.

Canada’s economic growth has rebounded sharply in recent
months, but the country faces a resurgence in coronavirus cases.

The price of oil, one of Canada’s major exports, was
supported by a report that U.S. fuel inventories fell, although
rising crude supply and concern of stalling demand capped gains.
U.S. crude prices were up 0.2% at $39.88 a barrel.

Canadian government bond yields were little changed across
the curve, with the 10-year trading at about 0.560%.

(Reporting by Fergal Smith; editing by Jonathan Oatis)
(([email protected]; +1 416 941 8113;))


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