AIRLINK 196.38 Increased By ▲ 4.54 (2.37%)
BOP 10.11 Increased By ▲ 0.24 (2.43%)
CNERGY 7.75 Increased By ▲ 0.08 (1.04%)
FCCL 38.10 Increased By ▲ 0.24 (0.63%)
FFL 15.74 Decreased By ▼ -0.02 (-0.13%)
FLYNG 24.54 Decreased By ▼ -0.77 (-3.04%)
HUBC 130.38 Increased By ▲ 0.21 (0.16%)
HUMNL 13.73 Increased By ▲ 0.14 (1.03%)
KEL 4.60 Decreased By ▼ -0.07 (-1.5%)
KOSM 6.19 Decreased By ▼ -0.02 (-0.32%)
MLCF 44.85 Increased By ▲ 0.56 (1.26%)
OGDC 206.51 Decreased By ▼ -0.36 (-0.17%)
PACE 6.58 Increased By ▲ 0.02 (0.3%)
PAEL 39.77 Decreased By ▼ -0.78 (-1.92%)
PIAHCLA 17.20 Decreased By ▼ -0.39 (-2.22%)
PIBTL 7.99 Decreased By ▼ -0.08 (-0.99%)
POWER 9.20 Decreased By ▼ -0.04 (-0.43%)
PPL 178.91 Increased By ▲ 0.35 (0.2%)
PRL 38.93 Decreased By ▼ -0.15 (-0.38%)
PTC 24.31 Increased By ▲ 0.17 (0.7%)
SEARL 109.27 Increased By ▲ 1.42 (1.32%)
SILK 1.00 Increased By ▲ 0.03 (3.09%)
SSGC 37.75 Decreased By ▼ -1.36 (-3.48%)
SYM 18.83 Decreased By ▼ -0.29 (-1.52%)
TELE 8.53 Decreased By ▼ -0.07 (-0.81%)
TPLP 12.14 Decreased By ▼ -0.23 (-1.86%)
TRG 64.76 Decreased By ▼ -1.25 (-1.89%)
WAVESAPP 12.11 Decreased By ▼ -0.67 (-5.24%)
WTL 1.64 Decreased By ▼ -0.06 (-3.53%)
YOUW 3.87 Decreased By ▼ -0.08 (-2.03%)
BR100 12,000 Increased By 69.2 (0.58%)
BR30 35,548 Decreased By -112 (-0.31%)
KSE100 114,256 Increased By 1049.3 (0.93%)
KSE30 35,870 Increased By 304.3 (0.86%)
Markets

C$ reverses from one-week high as greenback rallies

TORONTO: The Canadian dollar weakened against its US counterpart on Wednesday, pulling back from an earlier one-week
Published February 13, 2019

TORONTO: The Canadian dollar weakened against its US counterpart on Wednesday, pulling back from an earlier one-week high, after the release of US inflation data that prompted some investors to bet that the Federal Reserve could raise interest rates further.

The US dollar rose against a basket of major currencies, reverse the prior day's decline, after a measure of inflation excluding energy prices rose.

"We are seeing a little bit of dollar strength here," said Erik Nelson, a currency strategist at Wells Fargo. "We had some solid CPI numbers this morning, and maybe some very slight increase in speculation that the Fed is not done here."

Higher US interest rates could reduce the attractiveness of buying lower-yielding Canadian bonds.

The gap between Canada's two-year yield and its US equivalent widened by 1.6 basis points to a spread of 72 basis points in favor of the US bond.

At 4:38 p.m. (2138 GMT), the Canadian dollar was trading 0.2 percent lower at 1.3256 to the greenback, or 75.44 US cents. The currency touched its strongest level intraday since Feb. 6 at 1.3197.

The one-week high for the loonie came as US stocks were boosted by hopes the United States and China can iron out a trade deal.

A US-China deal could boost prospects for Canada's economy as a major producer of commodities, including oil.

US crude oil futures settled 1.5 percent higher at $53.90 a barrel on Wednesday, as Saudi Arabia said it would cut crude exports and deliver an even deeper cut to its production.

Canadian home prices fell 0.1 percent in January, the fourth consecutive month of decline, led by weakness in major Western Canadian cities, the Teranet-National Bank Composite House Price Index showed.

Canadian government bond prices were lower across the yield curve in sympathy with Treasuries. The two-year fell 3.7 Canadian cents to yield 1.818 percent and the 10-year declined 14 Canadian cents to yield 1.935 percent.

Copyright Reuters, 2019
 

Comments

Comments are closed.