AGL 38.89 Increased By ▲ 0.87 (2.29%)
AIRLINK 206.50 Increased By ▲ 9.14 (4.63%)
BOP 9.53 Decreased By ▼ -0.01 (-0.1%)
CNERGY 6.05 Increased By ▲ 0.14 (2.37%)
DCL 8.95 Increased By ▲ 0.13 (1.47%)
DFML 37.66 Increased By ▲ 1.92 (5.37%)
DGKC 96.95 Increased By ▲ 0.09 (0.09%)
FCCL 35.25 No Change ▼ 0.00 (0%)
FFBL 88.94 Increased By ▲ 6.64 (8.07%)
FFL 13.55 Increased By ▲ 0.38 (2.89%)
HUBC 128.39 Increased By ▲ 0.84 (0.66%)
HUMNL 13.70 Increased By ▲ 0.20 (1.48%)
KEL 5.39 Increased By ▲ 0.07 (1.32%)
KOSM 7.14 Increased By ▲ 0.14 (2%)
MLCF 44.00 Decreased By ▼ -0.70 (-1.57%)
NBP 60.40 Decreased By ▼ -1.02 (-1.66%)
OGDC 215.72 Increased By ▲ 1.05 (0.49%)
PAEL 40.60 Increased By ▲ 1.81 (4.67%)
PIBTL 8.40 Increased By ▲ 0.15 (1.82%)
PPL 194.89 Increased By ▲ 1.81 (0.94%)
PRL 39.25 Increased By ▲ 0.59 (1.53%)
PTC 26.60 Increased By ▲ 0.80 (3.1%)
SEARL 106.75 Increased By ▲ 3.15 (3.04%)
TELE 8.64 Increased By ▲ 0.34 (4.1%)
TOMCL 36.13 Increased By ▲ 1.13 (3.23%)
TPLP 13.75 Increased By ▲ 0.45 (3.38%)
TREET 24.38 Increased By ▲ 2.22 (10.02%)
TRG 61.15 Increased By ▲ 5.56 (10%)
UNITY 32.95 Decreased By ▼ -0.02 (-0.06%)
WTL 1.66 Increased By ▲ 0.06 (3.75%)
BR100 11,930 Increased By 203.1 (1.73%)
BR30 36,808 Increased By 431.2 (1.19%)
KSE100 111,922 Increased By 2409 (2.2%)
KSE30 35,277 Increased By 764 (2.21%)
Markets

Canadian dollar gains as lower bond yields boost sentiment

  • Canadian dollar rises 0.3% against the greenback.
  • Loonie trades in a range of 1.2590 to 1.2685.
  • Price of US oil dips 0.1%.
  • Canadian bond yields ease across a flatter curve.
Published March 9, 2021

TORONTO: The Canadian dollar strengthened against its US counterpart on Tuesday as a decline in bond yields bolstered risk appetite, while investors awaited an interest rate decision by the Bank of Canada on Wednesday.

The safe-haven US dollar fell back from 3-1/2-month highs and US stock index futures climbed, with investors scooping up beaten-down technology stocks.

Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to risk appetite.

US crude oil futures consolidated recent gains, dipping 0.1% to $64.98 a barrel. On Monday, oil touched its highest since October 2018, bolstered by tighter supply due to extended OPEC+ output curbs and growing hopes of a recovery in demand.

The Canadian dollar was trading 0.3% higher at 1.2621 to the greenback, or 79.23 US cents, having traded in a range of 1.2590 to 1.2685.

Since the start of the year, the loonie has gained 0.9%, trailing just sterling and the Norwegian crown among G10 currencies.

Investors see rising chances that the Bank of Canada would hike interest rates next year as the economic outlook improves, but the central bank is likely to push back against those bets for now, pointing to still high unemployment, analysts say.

Canadian government bond yields fell across a flatter curve in sympathy with US Treasuries, with the 10-year down 6.2 basis points at 1.462%. On Monday, it touched its highest since January 2020 at 1.545%.

Comments

Comments are closed.