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CANADA FX DEBT-C$ eases against broadly firmer U.S. dollar

Published 2020-08-26, 10:12 a/m
USD/CAD
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CL
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CA2YT=RR
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CA10YT=RR
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* Canadian dollar at 1.3176 to the greenback

* Bond prices lower across the maturity curve

By Saqib Iqbal Ahmed

Aug 26 (Reuters) - The Canadian dollar edged lower against its broadly firm U.S. counterpart on Wednesday, but losses were limited as oil prices remained near a five-month high.

The Canadian dollar CAD= was at 1.3176 to the greenback, or 75.90 U.S. cents, weaker than Tuesday's close of 1.3168, or 75.94 U.S. cents. The loonie remained close to a seven-month high hit on Monday.

The U.S. dollar was broadly firmer on the day after data showed new orders for key U.S.-made capital goods increased in July, though the pace slowed from June's robust gain, suggesting the rebound in business investment would be gradual amid uncertainty about the course of the COVID-19 pandemic. Canadian dollar's losses were in check as the price of oil, one of Canada's major exports, near $46 a barrel on Wednesday and close to its highest since March, was lifted by U.S. producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura and a report showing a drop in U.S. crude inventories. Canadian dollar's losses on Wednesday followed a 0.3% gain in the previous session.

Canadian government bond prices were lower across the maturity curve. The two-year CA2YT=RR yield was at 0.304% up from 0.292% late on Tuesday, while the benchmark Canadian 10-year CA10YT=RR yield rose to 0.617% from 0.60%.

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