Wednesday, March 22

Canadian dollar touches 10-day low amid Ukraine uncertainty

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TORONTO — The Canadian dollar edged lower

against the greenback on Monday, as investors weighed warnings

that Russia could invade Ukraine at any time and a major trade

route between Canada and the United States reopened.

World shares skidded and the safe-haven US dollar

gained ground against a basket of major currencies as the United

States said Russia might create a surprise pretext for an attack

on Ukraine.

Still, hints by Ukraine at possible concessions to Russia

helped cap the price of oil, one of Canada’s major exports.

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US crude prices fell 0.6% to $92.55 a barrel, while

the Canadian dollar was trading 0.1% lower at 1.2752 to the

greenback, or 78.42 US cents. It touched its weakest intraday

level since Feb. 4 at 1.2783.

North America’s busiest trade link reopened for traffic late

Sunday evening, ending a six-day blockade, the Canada Border

Services Agency said, after Canadian police cleared the

protesters fighting to end COVID-19 restrictions.

Canada’s inflation report for January, due on Wednesday,

could offer clues on the outlook for Bank of Canada interest

rate hikes. Money markets expect the central bank to tighten

next month for the first time since October 2018 to fight


Canadian government bond yields were higher across the

curve, tracking the move in US Treasuries.

The 10-year was up 3.3 basis points at 1.904%,

after touching on Friday its highest intraday level in nearly

three years at 1.961%.

(Reporting by Fergal Smith

Editing by Paul Simao)