Friday, September 30

Canadian dollar rebounds from six-week low as oil rallies


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TORONTO — The Canadian dollar strengthened

against its US counterpart on Tuesday as oil prices rose, but

gains for the currency were limited as investors weighed global

business activity surveys and awaited a key central bank

conference this week.

The price of oil, one of Canada’s major exports, climbed as

Saudi Arabia floated the idea of ​​OPEC+ output cuts to support

prices.

US crude oil futures rose 3% to $93.07 a barrel,

while the Canadian dollar was trading 0.4% higher at

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1.3000 to the greenback, or 76.92 US cents. Earlier in the

day, the currency touched its weakest since July 15 at 1.3063.

Wall Street’s main indexes edged lower after a steep selloff

in the previous session on concerns about aggressive signals

from the US Federal Reserve on interest rate hikes. Fed Chair

Jerome Powell is due to speak at the Jackson Hole symposium in

Wyoming on Friday.

Meanwhile, a survey showing euro zone business activity

contracted for a second straight month pinned the single

currency to a 20-year low against the US dollar, with

surging gas prices adding to misery dragging Europe towards

recession.

Russia’s invasion of Ukraine is bringing Canada and Germany

closer together, with Canada seeking to boost energy and

critical mineral exports to Germany as both countries wean

themselves off fossil fuels, Canadian and German leaders said on

Monday.

Canadian government bond yields were higher across a

less-inverted curve on Tuesday. The 10-year touched

its highest since July 21 at 3.078% before dipping to 3.057%, up

4.1 basis points on the day.

(Reporting by Fergal Smith; Editing by Susan Fenton)



financialpost.com