TORONTO (Reuters) - The Canadian dollar fell to a four-week low against its broadly stronger U.S. counterpart on Thursday as oil prices tumbled, with investors concerned that rising coronavirus infections could derail a global economic recovery.
The Canadian dollar
For the month, the loonie was down 0.4%, having been up as much as 1.8% just eight days ago.
The price of oil, one of Canada's major exports, fell to its lowest since mid-June, extending the previous day's sharp decline on the potential impact renewed coronavirus lockdowns will have on oil demand.
U.S. crude (CLc1) prices were down nearly 6% at $35.16 a barrel, while the safe-haven U.S. dollar (DXY) climbed against a basket of major currencies.
Canada's finance minister said on Wednesday for the first time that federal pandemic aid to households and businesses had limits as the Bank of Canada chief warned of a "long slog" toward a post-coronavirus economic recovery.
Canada's GDP data for August is due on Friday. Analysts expect the economy to have expanded by 0.9% from July.
Canadian government bond yields were mixed across a flatter curve. The 10-year (CA10YT=RR) eased about half a basis point to 0.590%.