Canadian greenback falls 0.3% in opposition to dollar
Touches weakest since February 12 at 1.4316
Value of U.S. oil falls 2.8%
Bond yields ease throughout the curve
TORONTO, Feb 25 (Reuters) – The Canadian greenback weakened to a close to two-week low in opposition to its U.S. counterpart on Tuesday as oil costs fell and buyers grew extra frightened that U.S. commerce tariffs will likely be applied.
The loonie was buying and selling 0.3% decrease at 1.43 to the U.S. greenback, or 69.93 U.S. cents, after touching its weakest intraday degree since February 12 at 1.4316.
“Whereas U.S. progress fears are prime of thoughts for markets, and are weighing on the U.S. greenback extra broadly, CAD has managed to ship a fair weaker efficiency in current days,” stated Nick Rees, senior FX market analyst at Monex Europe Ltd.
“To us, because of this the loonie is lastly headed in the correct course, with markets now beginning to correctly worth in tariff dangers going through the Canadian economic system.”
On Monday, U.S. President Donald Trump stated that tariffs on Canadian and Mexican imports are “on time and on schedule” regardless of efforts by the nations to beef up border safety and halt the movement of fentanyl into the U.S. forward of a March 4 deadline.
“If applied these tariffs will tip the Canadian economic system right into a recession … With this in thoughts, we see loads of scope left for the loonie to fall additional because the week progresses,” Rees stated.
Canada sends about 75% of its exports to the U.S., together with oil, which fell to a two-month low. U.S. crude oil futures have been buying and selling 2.8% decrease at $68.75 a barrel.
Canadian bond yields eased throughout the curve, monitoring strikes in U.S. Treasuries as buyers sought a refuge in bonds from indicators of deceleration within the U.S. economic system and protracted geopolitical uncertainty.
The ten-year was down 6.8 foundation factors at 3.005% after earlier touching its lowest since February 7 at 2.979%. (Reporting by Fergal Smith; modifying by Mark Heinrich)
