Canadian dollar hits 2-1/2 months low

The Canadian dollar fell to a two-and-a-half month low against the greenback on Friday as the coronavirus outbreak weighed on investor sentiment, offsetting reduced bets for a Bank of Canada interest rate cut after domestic data showed a solid jobs gain.

At 3:55 p.m. (2055 GMT), the Canadian dollar was trading 0.1% lower at 1.3301 to the greenback, or 75.18 US cents. The currency touched its weakest intraday level since Nov. 21 at 1.3322. For the week, the loonie was down 0.5% as investors worried that the slump in crude oil prices amid the coronavirus outbreak in China would weigh on Canada's commodity-linked economy.

Speculators have slashed their bullish bets on the Canadian dollar to a five-week low, data from the US Commodity Futures Trading Commission and Reuters calculations showed. As of Feb. 4, net long positions had fallen to 18,563 contracts from 34,590 in the prior week. Canadian government bond yields fell across a flatter yield curve. The 10-year yield was down 4.2 basis points at 1.327%.