By Ketki Saxena
Investing.com -- The Canadian dollar fell against its U.S. counterpart today, on track for its biggest decline in nearly four weeks as the safe-haven U.S. dollar climbed against a basket of major currencies, and the Canadian currency was pressured by a slide in crude.
The USD/CAD pair was 1.54% higher at C$1.3057 to a US dollar, as risk-off sentiment and concerns of global slowdown weighed on traders, boosting appeal for the safe-haven greenback.
The loonie was also pressured by a sharp decline in oil, one of Canada's major exports, as concerns of a global recession outweighed worries of tight supply.
"A solid bout of risk-off sentiment is sweeping through asset classes this morning," Derek Holt, vice president of capital markets economics at Scotiabank (TSX:BNS), said in a note. "CAD and shorter-term rates continue to ignore the BoC's twin business and consumer surveys that came out yesterday."
Yesterday’s Bank of Canada survey showed consumer inflation Yesterday, expectations hitting record highs in the short-term and up "significantly" over the long-term. The data bolstered calls for a 75-basis point hike at the Canadian central Bank’s next policy decision in Mid July and saw investors raising bullish bets on the Canadian currency.
Canadian bond yields meanwhile continued to retreat, remaining lower across a flatter curve, tracking U.S. Treasuries.
The Canada 10-Yeareased 0.102 points to 3.072%, its lowest level in a month. The Canada 5-Year pulled back 0.099 points to 2.953%, while the Canada 2-Year dropped 0.062 points to 3.004%.