Canadian dollar weakens

01 Aug, 2017

The Canadian dollar weakened on Monday against its US counterpart as oil prices dipped and the greenback posted broader gains, but the loonie was on track to advance for the third straight month. The currency has rallied more than 10 percent since early May, including 4 percent this month, as the Bank of Canada raised interest rates for the first time in nearly seven years.
Data on Friday showing robust growth in the domestic economy in May has supported expectations that the central bank will hike again in the coming months. US crude prices were down 0.38 percent at $49.52 a barrel. Prices had hit an earlier 2-month high, boosted by news of a producers' technical meeting next week.
At 9:32 am ET (1332 GMT), the Canadian dollar was trading at C$1.2472 to the greenback, or 80.18 US cents, down 0.3 percent. The currency traded in a range of C$1.2433 to C$1.2490. On Thursday, it touched its strongest in more than two years at C$1.2414.

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