TORONTO: The Canadian dollar edged higher against its US counterpart on Tuesday as investors weighed uncertainty caused by Russia’s invasion of Ukraine and domestic data showed the economy expanding at a robust pace in the fourth quarter.
The Canadian economy grew 6.7% in the fourth quarter on an annualized basis, beating analyst expectations and the Bank of Canada’s own forecast of 5.8%, data from Statistics Canada showed. A preliminary estimate pointed to growth continuing in January, while separate data showed Canadian manufacturing activity expanding in February at the fastest pace in three months.
Canada’s central bank is expected to hike interest rates on Wednesday for the first time since October 2018 despite the war in Ukraine.
High-level talks between Kyiv and Moscow ended with no agreement and a huge Russian armored column bore down on Kyiv, pressuring equity markets globally and pushing oil, one of Canada’s major exports, above $100 a barrel.
Safe havens benefited, with the US dollar climbing against a basket of major currencies.
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