AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.06 Decreased By ▼ -0.47 (-0.36%)
BOP 6.75 Increased By ▲ 0.07 (1.05%)
CNERGY 4.49 Decreased By ▼ -0.14 (-3.02%)
DCL 8.55 Decreased By ▼ -0.39 (-4.36%)
DFML 40.82 Decreased By ▼ -0.87 (-2.09%)
DGKC 80.96 Decreased By ▼ -2.81 (-3.35%)
FCCL 32.77 No Change ▼ 0.00 (0%)
FFBL 74.43 Decreased By ▼ -1.04 (-1.38%)
FFL 11.74 Increased By ▲ 0.27 (2.35%)
HUBC 109.58 Decreased By ▼ -0.97 (-0.88%)
HUMNL 13.75 Decreased By ▼ -0.81 (-5.56%)
KEL 5.31 Decreased By ▼ -0.08 (-1.48%)
KOSM 7.72 Decreased By ▼ -0.68 (-8.1%)
MLCF 38.60 Decreased By ▼ -1.19 (-2.99%)
NBP 63.51 Increased By ▲ 3.22 (5.34%)
OGDC 194.69 Decreased By ▼ -4.97 (-2.49%)
PAEL 25.71 Decreased By ▼ -0.94 (-3.53%)
PIBTL 7.39 Decreased By ▼ -0.27 (-3.52%)
PPL 155.45 Decreased By ▼ -2.47 (-1.56%)
PRL 25.79 Decreased By ▼ -0.94 (-3.52%)
PTC 17.50 Decreased By ▼ -0.96 (-5.2%)
SEARL 78.65 Decreased By ▼ -3.79 (-4.6%)
TELE 7.86 Decreased By ▼ -0.45 (-5.42%)
TOMCL 33.73 Decreased By ▼ -0.78 (-2.26%)
TPLP 8.40 Decreased By ▼ -0.66 (-7.28%)
TREET 16.27 Decreased By ▼ -1.20 (-6.87%)
TRG 58.22 Decreased By ▼ -3.10 (-5.06%)
UNITY 27.49 Increased By ▲ 0.06 (0.22%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 10,445 Increased By 38.5 (0.37%)
BR30 31,189 Decreased By -523.9 (-1.65%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)
Markets

Canadian dollar retreats from 3-week high as bond yields climb

  • Canadian dollar weakens 0.4% against the greenback
  • Canadian payroll employment rises by 324,800 in July
  • Price of US oil increases 0.6%
  • Canadian 10-year yield touches a near four-month high
Published September 28, 2021

TORONTO: The Canadian dollar weakened against the greenback on Tuesday as higher US bond yields offset further gains for oil prices, with the loonie pulling back its strongest level in nearly three weeks.

The loonie was trading 0.4% lower at 1.2675 to the greenback, or 78.90 US cents. Earlier in the session, the currency touched its strongest since Sept. 10 at 1.2593.

The decline for the loonie came as the US dollar climbed to its highest level in more than five weeks against a basket of major currencies. Higher US Treasury yields made the greenback more attractive to investors.

US Treasury yields have surged since the end of last week, after the Federal Reserve said it will likely begin reducing its monthly bond purchases as soon as November and hinted that interest rate hikes may follow.

Yields continue climb as uncertainty sidelines bulls

The price of oil, one of Canada's major exports, rose for a sixth day on the prospect of tighter supply and firm demand but reduced factory output in China due to power shortages tempered the rally. US crude prices were up 0.6% at $75.88 a barrel.

Canadian payroll employment rose by 324,800 in July, led by gains in the services-producing sector in Ontario, Alberta and British Columbia, data from Statistics Canada showed.

GDP data for July is due on Friday, which could offer further clues on the strength of the domestic economy.

Canadian government bond yields were higher across a steeper curve, tracking the move in US Treasuries.

The 10-year touched its highest level since June 4 at 1.506% before dipping to 1.501%, up 4.6 basis points on the day.

Comments

Comments are closed.