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Canadian dollar rises ahead of potential further Fed easing steps

Published 2020-06-10, 09:35 a/m
© Reuters.
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* Canadian dollar rises 0.2% against the greenback

* Price of U.S. oil decreases 1.3%

* Canadian bond yields fall across the curve

TORONTO, June 10 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Wednesday ahead of a Federal Reserve interest rate announcement, as investors weighed the prospect of additional easing measures from the U.S. central bank.

Global stocks .WORLD rose, while the U.S. dollar .DXY dropped to a three-month low against a basket of major currencies amid speculation the Fed will announce it intends to keep a recent rise in bond yields in check. loonie CAD= was trading 0.2% higher at 1.3391 to the greenback, or 74.68 U.S. cents. The currency, which on Monday notched a three-month high at 1.3352, traded in a range of 1.3370 to 1.3428.

Canada and the United States are set to extend a ban on non-essential travel to late July as both countries seek to control the spread of the coronavirus, according to three sources familiar with the matter. The ban, currently due to expire on June 21, does not affect trade. 75% of Canada's exports go to the United States, including oil. U.S. crude oil futures CLc1 fell 1.3% to $38.42 a barrel after a report showed a rise in crude inventories in the United States, reviving concerns about oversupply and weak demand because of the coronavirus crisis. government bond yields were lower across the curve in sympathy with U.S. Treasuries, with the 10-year CA10YT=RR down 1.9 basis points at 0.615%.

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