TORONTO (Reuters) - The Canadian dollar extended this week's decline against its U.S. counterpart on Friday as concern about rising new coronavirus infections in the United States and China weighed on the price of oil, one of Canada's major exports.
U.S. crude (CLc1) prices were down 0.5% at $38.52 a barrel, while U.S. stock index futures also lost ground. On Thursday, the United States set a new record for a one-day increase in COVID-19 cases.
The Canadian dollar
On Thursday, the loonie hit a 10-day low at 1.3670. It is on track to fall 0.5% for the week.
Its decline this week came as investors worried that Washington could reimpose tariffs on Canadian aluminum and after Canada lost one of its coveted triple-A ratings when Fitch downgraded it for the first time, citing the billions of dollars in emergency aid Ottawa has spent to help bridge the downturn caused by COVID-19 pandemic shutdowns.
Canada's emergency spending was needed to lay the groundwork for a recovery, Prime Minister Justin Trudeau said on Thursday in response to Fitch's rating downgrade.
Canadian government bond yields were mixed across a flatter curve, with the 10-year (CA10YT=RR) down 1.1 basis points at 0.519%.