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CANADA FX DEBT-C$ slips to 7-week low as COVID-19 fears grip markets

    * Canadian dollar dips 0.1% against the greenback
    * Loonie touches a seven-week low at 1.3414
    * Price of U.S. oil decreases 0.2%
    * Canada's 10-year yield holds steady at about 0.560%

    TORONTO, Sept 24 (Reuters) - The Canadian dollar weakened to
a seven-week low against its U.S. counterpart on Thursday as
investors worried about another global economic hit from the
coronavirus pandemic and Ottawa's pledge of further economic aid
failed to lift the currency.
    The loonie        was trading 0.1% lower at 1.3395 to the
greenback, or 74.65 U.S. cents. The currency touched its weakest
intraday level since Aug. 4 at 1.3414.
    Global shares        slid and the U.S. dollar        rose,
with political stalemate in Washington adding to investor
anxiety.             
    Canada runs a current account deficit and is a major
exporter of oil, so the loonie tends to be sensitive to the
global flow of trade and capital.
    U.S. crude oil futures        were down 0.20% at $39.85 a
barrel as a fall in U.S. inventories last week was offset by the
stronger greenback and a renewed wave of COVID-19 cases in
Europe.             
    Canada is also seeing a pick-up in COVID-19 infections. The
Canadian government's vow to double down on pandemic-related
spending will support activity but raises questions over a 
burgeoning deficit, economists say.             
    Canadian government bond yields were little changed across
the curve, with the 10-year             trading at about 0.560%.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)
  
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