Economy

Canadian Dollar pulls back from 3-1/2-year high

Published

3 years ago

May 11, 2021

The Canadian dollar weakened against its U.S. counterpart on Tuesday, pulling back from its highest level in 3-1/2 years as investors turned cautious ahead of data on Wednesday that is expected to show a jump in U.S. inflation.

Global stock markets suffered a second day of sharp losses as a combination of inflation worries, lofty valuations and an anti-monopoly drive in China sent the world’s mightiest tech giants tumbling.

The price of oil, one of Canada‘s major exports, fell on fading fears of a prolonged outage at the largest U.S. fuel pipeline system, while India’s coronavirus crisis and the sell-off in global stock markets also weighed.

U.S. crude prices fell 1.8% to $63.76 a barrel, while the Canadian dollar was trading 0.2% lower at 1.2118 to the greenback, or 82.52 U.S. cents.

The currency traded in a range of 1.2087 to 1.2125. On Monday, it touched its strongest level since September 2017 at 1.2074, bolstered by the recent surge in commodity prices and the Bank of Canada‘s shift last month to a more hawkish stance.

BoC Governor Tiff Macklem is due to speak on Thursday on the benefits of an inclusive economy.

Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year rose to its highest level since Wednesday at 1.543% before dipping to 1.530%, up 1.2 basis points on the day.

(Reporting by Fergal Smith; editing by Jonathan Oatis)

Economy

September merchandise trade deficit narrows to $1.3 billion: Statistics Canada

Published

4 hours ago

November 5, 2024

Anne Joseph

OTTAWA – Statistics Canada says the country’s merchandise trade deficit narrowed to $1.3 billion in September as imports fell more than exports.

The result compared with a revised deficit of $1.5 billion for August. The initial estimate for August released last month had shown a deficit of $1.1 billion.

Statistics Canada says the results for September came as total exports edged down 0.1 per cent to $63.9 billion.

Exports of metal and non-metallic mineral products fell 5.4 per cent as exports of unwrought gold, silver, and platinum group metals, and their alloys, decreased 15.4 per cent. Exports of energy products dropped 2.6 per cent as lower prices weighed on crude oil exports.

Meanwhile, imports for September fell 0.4 per cent to $65.1 billion as imports of metal and non-metallic mineral products dropped 12.7 per cent.

In volume terms, total exports rose 1.4 per cent in September while total imports were essentially unchanged in September.

This report by The Canadian Press was first published Nov. 5, 2024.

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