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Canadian dollar hits 4-week low ahead of BoC rate decision

Published 2019-04-23, 09:33 a/m
© Reuters.  Canadian dollar hits 4-week low ahead of BoC rate decision
USD/CAD
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CL
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CA2YT=RR
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CA10YT=RR
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DXY
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* Loonie falls 0.4% against the U.S. dollar

* Canadian wholesale rises by 0.3 percent in February

* Price of U.S. oil increases 0.3%

* Canadian bond prices edge higher across the yield curve

TORONTO, April 23 (Reuters) - The Canadian dollar weakened to a nearly four-week low against its U.S. counterpart on Tuesday as the greenback broadly climbed and as investors awaited a Bank of Canada interest rate decision on Wednesday.

The U.S. dollar .DXY rose against a basket of major currencies, supported by this month's rise in U.S. bond yields. Bank of Canada is expected to hold its benchmark interest rate steady at 1.75% on Wednesday and for the rest of this year, with calls for the next hike in early 2020 resting on a knife's edge, a Reuters poll showed. 9:12 a.m. (1312 GMT), the Canadian dollar CAD=D4 was trading 0.4% lower at 1.3399 to the greenback, or 74.63 U.S. cents. The currency touched its weakest since March 29 at 1.3413.

The decline for the loonie came despite a nearly six-month high for the price of oil, one of Canada's major exports, after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran. crude CLc1 prices were up 0.3% at $65.77 a barrel.

Canadian wholesale trade increased by 0.3 percent in February from January on stronger sales in the motor vehicle and parts subsector, Statistics Canada said. Analysts surveyed by Reuters had forecast a 0.1 percent increase. government bond prices edged higher across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR was up 1.5 Canadian cents to yield 1.612% and the 10-year CA10YT=RR gained 2 Canadian cents to yield 1.785%.

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