TORONTO (Reuters) - The Canadian dollar fell to a near two-week low against its broadly stronger U.S. counterpart on Tuesday, as oil prices tumbled and a selloff in technology shares weighed on investor sentiment.
World shares <.WORLD> struggled as doubts about a recovery in tech stocks lingered after last week's rout.
Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital.
U.S. crude (CLc1) prices were down 6.5% at $37.19 a barrel, pressured by concerns that a recovery in demand could weaken as coronavirus infections flare up around the world.
The Canadian dollar
The Bank of Canada will leave its policy interest rate at 0.25% on Wednesday and likely follow the U.S. Federal Reserve's path of reviewing its current inflation-targeting framework to protect the economy from the fallout of the coronavirus, a Reuters poll showed.
On Friday, data showed that Canada added 245,800 jobs in August, the fourth consecutive monthly increase.
Canadian government bond yields were lower across much of a flatter curve in sympathy with U.S. Treasuries on Tuesday. The 10-year (CA10YT=RR) fell 3.5 basis points to 0.562%.