US Markets

C$ holds near multi-week low as trade deal hopes ebb

Credit: REUTERS/Mark Blinch

The Canadian dollar was little changed against the greenback on Tuesday, holding near its weakest level since October as investors worried that a U.S.-China trade deal would be delayed and awaited a Bank of Canada interest rate decision this week.

* Canadian dollar trades near flat against the greenback * Price of U.S. oil decreases by 0.4% * Canadian bond prices rise across a flatter yield curve TORONTO, Dec 3 (Reuters) - The Canadian dollar was little changed against the greenback on Tuesday, holding near its weakest level since October as investors worried that a U.S.-China trade deal would be delayed and awaited a Bank of Canada interest rate decision this week. Global stock markets <.world> fell after President Donald Trump said a trade agreement with China might have to wait until after the U.S. presidential election in November 2020, denting hopes of a resolution soon to a dispute that has weighed on the world economy. [nL8N28D2KI] The Bank of Canada, which is expected to leave its benchmark interest rate unchanged on Wednesday at 1.75%, has expressed concern that trade uncertainty could hurt Canada's commodity-linked economy. The loonie has been pressured since October by a more dovish stance from the central bank. At 9:51 a.m. (1451 GMT), the Canadian dollar was trading nearly unchanged at 1.3311 to the greenback, or 75.13 U.S. cents. The currency traded in a range of 1.3283 to 1.3321. Less than two weeks ago, the loonie hit its weakest intraday level since Oct. 10 at 1.3328. The price of oil, one of Canada's major exports, fell on Tuesday, with U.S. crude oil futures down 0.4% at $55.73 a barrel. Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year rose 6.5 Canadian cents to yield 1.576% and the 10-year was up 64 Canadian cents to yield 1.464%. (Reporting by Fergal Smith; editing by Jonathan Oatis) ((fergal.smith@thomsonreuters.com; +1 416 941 8113;)) Keywords: CANADA FOREX/

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