US Markets

C$ gains as investors ditch greenback for other safe havens

Credit: REUTERS/Mark Blinch

The Canadian dollar strengthened against its U.S. counterpart on Monday, approaching a six-week high notched last week, as the greenback added to its recent decline against a basket of major currencies.

* Canadian dollar rises 0.1% against the greenback

* Loonie trades in a range of 1.3370 to 1.3413

* Price of U.S. oil declines 0.6%

* Canada's 10-year yield hits its lowest since June 15 at 0.482%

TORONTO, July 27 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Monday, approaching a six-week high notched last week, as the greenback added to its recent decline against a basket of major currencies.

The U.S. dollar fell to its lowest since June 2018 as deteriorating U.S.-China relations and concerns about the U.S. economy, with COVID-19 infections climbing in the country, saw investors look to the yen and Swiss franc as safe havens.

Gold soared to an all-time high, while the price of oil, one of Canada's major exports, gave up earlier gains. U.S. crude oil futures fell 0.6% to $41.05 a barrel.

The Canadian dollar was trading 0.1% higher at 1.3394 to the greenback, or 74.66 U.S. cents. The currency traded in a range of 1.3370 to 1.3413.

Last Thursday, the loonie touched its strongest intraday level since June 10 at 1.3347.

Canadian government bond yields were lower across a flatter curve in sympathy with U.S. Treasuries. The 10-year yield was down 1.6 basis points at 0.491%, having touched its lowest intraday level since June 15 at 0.482%.

The move lower in yields came ahead of a Federal Reserve meet meeting on Tuesday and Wednesday. The Fed could confirm recent hints about the benefits of an average inflation target, which would allow rates to stay lower for longer.

Canada's GDP report for May is due on Friday. (Reporting by Fergal Smith Editing by Nick Zieminski) ((fergal.smith@thomsonreuters.com; +1 416 941 8113;)) Keywords: CANADA FOREX/

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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