AGL 38.48 Decreased By ▼ -0.08 (-0.21%)
AIRLINK 203.02 Decreased By ▼ -4.75 (-2.29%)
BOP 10.17 Increased By ▲ 0.11 (1.09%)
CNERGY 6.54 Decreased By ▼ -0.54 (-7.63%)
DCL 9.58 Decreased By ▼ -0.41 (-4.1%)
DFML 40.02 Decreased By ▼ -1.12 (-2.72%)
DGKC 98.08 Decreased By ▼ -5.38 (-5.2%)
FCCL 34.96 Decreased By ▼ -1.39 (-3.82%)
FFBL 86.43 Decreased By ▼ -5.16 (-5.63%)
FFL 13.90 Decreased By ▼ -0.70 (-4.79%)
HUBC 131.57 Decreased By ▼ -7.86 (-5.64%)
HUMNL 14.02 Decreased By ▼ -0.08 (-0.57%)
KEL 5.61 Decreased By ▼ -0.36 (-6.03%)
KOSM 7.27 Decreased By ▼ -0.59 (-7.51%)
MLCF 45.59 Decreased By ▼ -1.69 (-3.57%)
NBP 66.38 Decreased By ▼ -7.38 (-10.01%)
OGDC 220.76 Decreased By ▼ -1.90 (-0.85%)
PAEL 38.48 Increased By ▲ 0.37 (0.97%)
PIBTL 8.91 Decreased By ▼ -0.36 (-3.88%)
PPL 197.88 Decreased By ▼ -7.97 (-3.87%)
PRL 39.03 Decreased By ▼ -0.82 (-2.06%)
PTC 25.47 Decreased By ▼ -1.15 (-4.32%)
SEARL 103.05 Decreased By ▼ -7.19 (-6.52%)
TELE 9.02 Decreased By ▼ -0.21 (-2.28%)
TOMCL 36.41 Decreased By ▼ -1.80 (-4.71%)
TPLP 13.75 Decreased By ▼ -0.02 (-0.15%)
TREET 25.12 Decreased By ▼ -1.33 (-5.03%)
TRG 58.04 Decreased By ▼ -2.50 (-4.13%)
UNITY 33.67 Decreased By ▼ -0.47 (-1.38%)
WTL 1.71 Decreased By ▼ -0.17 (-9.04%)
BR100 11,890 Decreased By -408.8 (-3.32%)
BR30 37,357 Decreased By -1520.9 (-3.91%)
KSE100 111,070 Decreased By -3790.4 (-3.3%)
KSE30 34,909 Decreased By -1287 (-3.56%)

The Canadian dollar edged higher against its U.S. counterpart on Thursday, after earlier touching a six-week low, as investors assessed the greenback's recent rally amid diverging central bank policy expectations and as oil prices remained under pressure.

At 2:36 p.m. EST (1936 GMT), the Canadian dollar was up 0.02%, at 1.2605 to the U.S. dollar, or 79.33 U.S. cents, having earlier touched its weakest level since Oct. 6, at 1.2627.

The loonie slumped on Tuesday after domestic data showed inflation rising at 4.7% in October, in line with market expectations.

"In normal times, when you've got 4%-plus inflation it would be quite positive for a currency," said Simon Harvey, FX market analyst for Monex Europe and Monex Canada. "But it came in at a time when G10 inflation is surprising to the upside Consistently, whether it's the U.S., the UK or just globally, so the idea that Canadian inflation came in as expected was actually a bit of a weight on Canadian front-end bond yields."

Data last week showed U.S. inflation in October running at its hottest since 1990, helping the greenback rally to a 16-month high.

In Britain, inflation rose to a 10-year high, data showed on Wednesday, bolstering expectations the Bank of England will raise interest rates in December.

Canadian dollar weakens

The Canadian dollar is likely to trade sideways in the near-term ahead of key U.S. data releases in the coming month, but overall, the softness is likely to be temporary, especially against said currencies like the euro and the yen, said Erik Nelson, currency strategist at Wells Fargo Securities.

"To me, Canada is one of the best positioned G10 currencies when I think about its domestic growth situation, the positive terms of trade shock from oil prices, the labor market, and the central bank likely to be one of the more aggressive hikers in the G10," he said.

The price of oil, one of Canada's major exports, rose slightly after hitting a six-week low following China's announcement it was moving to tap reserves.

China's move followed a Reuters report that the United States was asking large consuming nations to consider a stockpile release to lower prices as inflationary pressures, driven in part by surging energy prices, start to produce a political backlash.

U.S. crude prices were up 0.68% to $78.89 a barrel, while Brent crude added 1.16% to $81.21.

Comments

Comments are closed.