The currency rose yesterday the most this month versus the greenback as crude oil, Canada’s biggest export, topped $90 a barrel and the central bank reiterated a forecast for growth to resume in the second half, damping bets it might cut borrowing costs this year. Yields on 10-year Canadian government notes slid to within one basis point of a record today.
“The risks have increased,” Camilla Sutton, chief currencies strategist at Bank of Nova Scotia’s Scotia Capital unit, said in a telephone interview from Toronto. “We’re in a very mixed holding pattern now; we’re looking to the major central banks and governments. Temporarily the focus is off currencies like the Canadian dollar.”
Canada’s currency fell 0.3 percent to 98.66 cents per U.S. dollar at 12:48 p.m. in Toronto. It touched 98.30 cents earlier today after closing at 98.33 cents yesterday, up 0.7 percent. One Canadian dollar buys $1.0136.
Government bonds rose as investors sought safety amid concern the global economic slowdown is worsening. Yields on benchmark 10-year bonds dropped as much as five basis points, or 0.05 percentage point, to 2.221 percent. They reached a record 2.218 percent Sept. 6. The price of the 3.25 percent security maturing in June 2021 increased 36 cents to C$108.90.
Crude oil fluctuated, with October futures rising as much as 1 percent to $90.23 a barrel in New York and falling as much as 0.8 percent.
No comments:
Post a Comment