CANADA’S FX DEBT – Canadian dollar hits 6-day low as oil prices fall


    * Canadian dollar weakens 0.3% against the greenback
    * Touches its weakest since last Wednesday at 1.2417
    * Price of U.S. oil falls 1.1%
    * Value of Canadian building permits rises 4.3% in September

    TORONTO, Nov 2 (Reuters) - The Canadian dollar weakened to
its lowest level in nearly a week against its U.S. counterpart
on Tuesday, as oil prices fell and investors grew cautious ahead
of an expected reduction of economic stimulus by the Federal
    The loonie        was trading 0.3% lower at 1.2398 to the
greenback, or 80.66 U.S. cents, having touched its weakest level
since last Wednesday at 1.2417.
    The decline for the currency came as Australia's dollar
       was pressured by a more dovish than expected tone from
the Reserve Bank of Australia, in the first of several meetings
of central banks this week.             
    The Fed is expected on Wednesday to say it will start to
taper bond purchases, though markets' focus is on clues about
interest rates liftoff.
    Last week, the Bank of Canada said it could hike rates as
soon as April, three months earlier than previously thought.
    Expectations of a rise in U.S. crude inventories weighed on
the price of oil, one of Canada's major exports. U.S. crude
       prices were down 1.1% at $83.12 a barrel.             
    The value of Canadian building permits rose by 4.3% in
September from August, beating estimates for a 3.1% increase,
data from Statistics Canada showed.             
    The Canadian employment report for October, due on Friday,
can offer further clues about the strength of the domestic
    The Canadian 10-year yield             was little changed at
about 1.750%, after touching on Monday its highest intraday
level since May 2019 at 1.766%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)

Leave A Reply

Your email address will not be published.