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CANADA FX DEBT-Canadian dollar hits 1-week low as equity markets slide

 (Adds strategist quotes and details throughout, updates prices)
    * Canadian dollar weakens 0.6% against the greenback
    * Loonie hits a one-week low at 1.3149
    * Price of U.S. oil settles 0.8% lower
    * Canadian bond yields ease across a flatter curve

    By Fergal Smith
    TORONTO, Nov 12 (Reuters) - The Canadian dollar fell for the
third straight day against the greenback on Thursday, as surging
COVID-19 infections weighed on investor sentiment and a senior
Bank of Canada official said the level of economic activity that
Canada can sustain must rise.
    The Canadian dollar        was trading 0.6% lower at 1.3135
to the greenback, or 76.13 U.S. cents, having touched its
weakest intraday level since last Thursday at 1.3149.    
    "CAD seems to be following equities fairly closely, so the
weakness we're seeing in risk sentiment is probably weighing on
the loonie," said Erik Nelson, a currency strategist at Wells
Fargo in New York.
    Wall Street lost ground after New York became the latest
state to introduce social distancing restrictions to help
contain the virus and investors weighed the timeline of the mass
rollout of an effective vaccine.             
    Canada runs a current account deficit and is a major
producer of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. crude oil futures        settled 0.8% lower at $41.12 a
barrel, pressured by an unexpected rise in U.S. crude
stockpiles.                 
    After the COVID-19 pandemic, Canada will need to focus on
creating sustainable growth that does not leave people behind in
order to make higher levels of debt more manageable, a senior
Bank of Canada official said on Thursday.             
    Canadian government bond yields were lower across a flatter
curve in sympathy with U.S. Treasuries. The 10-year            
fell 5 basis points to 0.723%, extending its pullback from a
seven-month high on Tuesday at 0.803%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski and Jonathan Oatis)
  
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