Canada foreign exchange debt-C$ hits 4-week low, as the business curbs the cloud the US economic open | Instant News


(Adds strategist quotes and details; updates prices) * canadian dollar fell 0.2% against the greenback * the canadian dollar fell 0.4% in a week * the price of us crude fell 0.6%, the canadian bond yield to fall in a gentle curve Fergal Smith Toronto, June 26 (Reuters) – the canadian dollar fell to almost a four-week low against its U.S. counterpart on Friday, as investors fear that the rise of the American coronavirus infection can slow down the recovery of the US economy. In many U.S. States that were spared from the severity of the initial outbreaks or moved earlier to lift restrictions of movement have seen a surge of new cases, with Texas and Florida ordering bars to close on Friday. “This (news) has caused a big risk-from moving to London,” said Eric Bregar, head of currency strategy at the Bank rate of Canada. The market working on the assumption that there will be pockets of new cases, but that the United States is “still in the discovery phase,” said Bregar. Canada sends about 75% of its exports to the United States, including oil. Futures for U.S. crude oil settled 0.6% lower at $38.49 a barrel, while the major indexes in wall Street fell. The canadian dollar was trading 0.2% lower at 1.3664 to the dollar, or 73.19 cents. The currency hit its weakest intraday level since June 1 at 1.3715. The revival rates of the fed to cut interest rates below zero has helped the canadian dollar recover some of his fall, said Bregar. “It seems that now the bond market again wants to make the fed,” said Bregar. For the week the dollar fell by 0.4%. Its decline this week as investors worry that Washington could restore tariffs on canadian aluminum and after Canada lost one of its coveted triple a rating when Fitch downgraded it for the first time. Canadian government bond yields decreased in a gentle curve in sympathy with the United States. The 10-year fell nearly 3 basis points to the lowest level since June 15 of about 0.500%. (Reporting by Fergal Smith; editing by Jonathan Otis)



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