Canadian dollar steadies near six-week low as interest rate spreads widen
TLT•Oil prices and bond data
The price of oil, one of Canada's major exports, edged lower as reports of additional Saudi crude cargoes through Oman eased supply concerns. U.S. crude oil futures CLc1 were trading down 0.3% at $102.16 a barrel.
Domestic data showed that foreign investors bought a net C$20.65 billion ($14.76 billion) in Canadian securities in July, led by federal government bonds, following an upwardly revised C$41.25 billion total purchase in June, while Canadian investors sold a net C$30.63 billion worth of foreign securities.
Canadian dollar near six-week low
The Canadian dollar steadied near a six-week low against its U.S. counterpart on Thursday and bond yields fell, with a wider gap between the interest rates set by the Federal Reserve and the Bank of Canada helping to underpin the greenback.
The loonie CAD= was trading nearly unchanged at 1.3985 per U.S. dollar, or 71.51 U.S. cents, after touching its weakest intraday level since August 7 at 1.4001.
Rate gap supports the U.S. dollar
- The Fed on Wednesday raised its benchmark interest rate by a quarter of a percentage point to the range and flagged further increases in borrowing costs in coming months. Earlier this month, the Bank of Canada left its key rate unchanged at .
