AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)
Markets

Canadian dollar hits 2-week low ahead of BoC rate decision

  • Canadian dollar falls 0.2% against the greenback
  • Touches its weakest level since Oct. 14 at 1.2428
  • Price of US oil falls 1%
  • Canadian bond yields were mixed across a flatter curve
Published October 27, 2021

TORONTO: The Canadian dollar weakened to its lowest level in nearly two weeks against its US counterpart on Wednesday ahead of an interest rate announcement by the Bank of Canada and as the rally in global equity markets stalled.

The loonie was last trading 0.2% lower at 1.2410 to the greenback, or 80.58 US cents, after touching its weakest intraday level since Oct. 14 at 1.2428.

"The CAD is under modest pressure due to the weak risk tone in markets," strategists at Scotiabank said in a note.

A flare up in US-China tensions helped douse the equity market rally, offsetting tailwinds from forecast-beating earnings on Wall Street.

Canada is a major exporter of commodities, including oil, so the loonie tends to be sensitive to investor risk appetite.

US crude prices were down 1% at $83.77 a barrel after industry data showed crude oil stockpiles rose more than expected.

Canadian dollar rises on positive investor sentiment

The BoC could become the first central bank from a G7 country to end stimulus from its pandemic-era bond-buying program. The interest rate decision, along with an update on the central bank's economic forecasts, is due at 10 a.m. (1400 GMT).

The bank has pledged to keep rates at a record low 0.25% until economic slack is absorbed, which would happen in the second half of 2022 in its latest forecast. But money markets have moved in recent weeks to price in a hike by April.

"We expect the statement to push back against market pricing for an earlier start to the rate tightening cycle," the Scotiabank strategists said.

Canadian government bond yields were mixed across a flatter curve. The 2-year rose 3.1 basis points to 0.898%, nearly its highest since March last year, while the 10-year was down 1.9 basis points at 1.609%.

Comments

Comments are closed.