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Loonie hits a 2-week low as investors fret about new coronavirus cases

Published 2020-06-15, 10:46 a/m
© Reuters.
USD/CAD
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CL
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CA10YT=RR
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* Canadian dollar falls 0.2% against the greenback

* Canadian factory sales decrease by 28.5% in April from March

* Price of U.S. oil declines 2.9%

* Canadian bond yields ease across a flatter curve

TORONTO, June 15 (Reuters) - The Canadian dollar weakened to a two-week low against its U.S. counterpart on Monday as investors worried about a potential second wave of the coronavirus pandemic and domestic data showed a deeper-than-expected plunge in April factory sales.

The loonie CAD= was trading 0.2% lower at 1.3617 to the greenback, or 73.44 U.S. cents. The currency, which fell 1.2% last week, touched its weakest intraday level since June 1 at 1.3685.

U.S. stocks fell as a resurgence in new coronavirus cases in China and parts of the United States dampened hopes of a swift economic revival that drove the Nasdaq to record highs last week. about the pandemic also weighed on the price of oil, one of Canada's major exports. U.S. crude CLc1 prices were down 2.9% at $35.2 a barrel. O/R

Canadian factory sales decreased by 28.5% in April from March on a record decrease in motor vehicle assembly, as well as a decline in petroleum and coal products, Statistics Canada said. Analysts had forecast a 20% decrease in the value of shipments. data, from the Canadian Real Estate Association, showed that Canadian home sales rebounded by a record 56.9% month-over-month in May, when lockdowns to help contain the coronavirus pandemic eased, after plunging in April. government bond yields were lower across a flatter curve in sympathy with U.S. Treasuries, with the 10-year CA10YT=RR down 3.7 basis points at 0.497%. The 10-year yield touched its lowest intraday since May-15 at 0.468%.

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