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Canadian dollar recovers from six-week low as global markets trade steadier

Published 2020-09-22, 09:09 a/m
© Reuters. A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto
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TORONTO (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday as some calm returned to oil and global equity markets following steep declines the day before, with the currency recovering from an earlier near six-week low.

Stock markets <.WORLD> clawed back some ground, a day after rising second waves of the coronavirus epidemic led to a sharp sell-off.

The price of oil, one of Canada's major exports, rebounded as analysts took the view that renewed lockdown restrictions would have only a limited impact on fuel demand. U.S. crude (CLc1) prices were up 0.7% at $39.60 a barrel.

The Canadian dollar was trading nearly unchanged at 1.3302 to the greenback, or 75.18 U.S. cents. The currency touched its weakest intraday level since Aug. 12 at 1.3345.

Canadian Prime Minister Justin Trudeau is scheduled to unveil on Wednesday what he says is a far-reaching plan to help Canada recover from the pandemic. Ottawa has already announced more than C$300 billion of economic support measures, or about 14% of the country's GDP.

© Reuters. A Canadian dollar coin, commonly known as the

Canadian government bond yields were little changed across the yield curve on Tuesday, with the 10-year (CA10YT=RR) trading at about 0.550%.

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