Canadian dollar steadies near 18-month low as greenback posts broad-based gains
FXC•The Canadian dollar was nearly unchanged at C$1.4235 per U.S. dollar after touching an 18-month low, while the U.S. dollar gained against a basket of major currencies. Canadian government bond yields eased, and investors saw a 45% chance of a Bank of Canada rate hike this month, down from about 64% last week.
1. Loonie near low
The Canadian dollar steadied near an 18-month low on Thursday, trading nearly unchanged at C$1.4235 per U.S. dollar, or 70.25 U.S. cents. It earlier touched C$1.4263, its weakest intraday level since April 2025, after eight straight daily declines.
2. U.S. dollar gains
The U.S. dollar added to recent gains as the U.S. 10-year yield climbed to about 5.34%, a 24-year high, before turning lower. Marc Chandler of Bannockburn Capital Markets said the greenback had benefited from elevated oil prices and a robust domestic economy, while describing its momentum as “very stretched.” U.S. crude futures rose 1.9% to $92.16 a barrel after China suspended oil products exports.
3. Canadian indicators
Canada’s manufacturing PMI fell to 51.5 in September from 53.0 in August, its lowest level since March. The Canadian 10-year government bond yield fell 7.3 basis points to 3.926%, after reaching 4.042%, its highest since November 2023. Investors saw a 45% chance of a Bank of Canada rate hike this month, down from about 64% last week.
