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CANADA FX DEBT-Canadian dollar slides by most in 7 weeks as virus fears grow

    * Canadian dollar declines 0.8% against the greenback
    * Loonie hits a 3-week low at 1.3295
    * Price of U.S. oil falls 5.2%
    * Canadian bond yields ease across a flatter curve

    TORONTO, Oct 28 (Reuters) - The Canadian dollar weakened to
a three-week low against its U.S. counterpart on Wednesday, as
investors worried that rising coronavirus cases would slow
global economic recovery and ahead of an interest rate decision
by the Bank of Canada.
     Shares around the world          tumbled as coronavirus
infections grew rapidly in Europe and the United States,
igniting fears of possible strict lockdown measures that could
damage already fragile economic recoveries.             
    Canada is a major export of commodities, including oil, so
the loonie tends to be sensitive to prospects for global growth.
    U.S. crude        prices were down 5.2% at $37.50 a barrel
as a surge in U.S. crude stocks and rising coronavirus
infections fanned fears of a supply glut and weaker fuel demand.
            
    The Canadian dollar        was trading 0.8% lower at 1.3287
to the greenback, or 75.26 U.S. cents, its biggest decline since
Sept. 8. The currency touched its weakest intraday level since
Oct. 7 at 1.3295.
    Canada's central bank is due to make an interest rate
decision and update its economic outlook at 10 a.m. (1400 GMT).
The central bank has said it will leave rates at a record low of
0.25% until its 2% inflation target is achieved sustainably,
which it does not expect for at least two years.
    Canadian government bond yields were lower across a flatter
curve, with the 10-year             down 1.5 basis points at
0.582%.

 (Reporting by Fergal Smith; editing by Jonathan Oatis)
  
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