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Canadian dollar gains 0.3% against US dollar
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Recorded 1.3241, the highest price in 6 days.
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U.S. crude oil prices settled 2.5% higher
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Canadian government bond yields rise along a flat curve
by Fergal Smith
TORONTO (Reuters) – The Canadian dollar rose to a nearly one-week high on Tuesday as oil prices rose and investors hoped the Bank of Canada could raise interest rates. bottom.
The dollar rose 0.3% to $1.3241 (75.52 US cents), its highest since Wednesday.
“The market has been in a hold pattern lately, and Canadian traders at least are waiting for the double hit of US inflation data followed by a Bank of Canada announcement,” said Amo Sajota, director at ClarityFX in San Francisco. there is,” he said.
The central bank’s policy decision on Wednesday is moving toward a second straight quarter of rate hikes after a month of economic data showed solid growth, a stubbornly tight labor market and persistent underlying inflation, analysts said. It says.
“(The central bank’s) comments will be very key here, because the central bank is not necessarily winning the battle against inflation at this point,” Sahota said.
“Generally, I think the move we’ve seen in USD-CAD and the unusual rise in mid-June portends further Canadian dollar appreciation, but it’s not a linear move.” ”
In June, the Canadian dollar hit a nine-month high of $13,114.
Crude oil, one of Canada’s main exports, rose 2.5% on Tuesday, boosted by a weakening US dollar, hopes of rising demand in developing countries and supply cuts by the world’s largest oil exporter1. It settled at $74.83/bbl.
Canadian government bond yields rose along a flatter curve. Two-year maturities rose 8 basis points to 4.818% and 10-year maturities rose 2.9 basis points to 3.542%. (Reporting by Fergal Smith; Editing by Andrea Rich)
