US Markets

CANADA FX DEBT-C$ hits 5-day low as geopolitical tensions worry investors

Credit: REUTERS/MARK BLINCH

The Canadian dollar weakened to a five-day low against its U.S. counterpart on Tuesday as oil prices fell and as investors worried about geopolitical tensions that could hurt the outlook for the global economy.

* Canadian dollar dips 0.3% against the greenback

* Price of U.S. oil falls 0.4%

* Canadian bond prices trade mixed across the yield curve

TORONTO, Aug 13 (Reuters) - The Canadian dollar weakened to a five-day low against its U.S. counterpart on Tuesday as oil prices fell and as investors worried about geopolitical tensions that could hurt the outlook for the global economy.

Global stocks fell for a third straight day as fears about a drawn-out global trade war, protests in Hong Kong and a crash in Argentina's peso currency kept investors huddled in bonds, gold, and the Japanese yen for safety.

Canada runs a current account deficit and exports many commodities, including oil, so its economy could be hurt by a slowdown in the flow of global trade or capital.

Oil prices dropped after seesawing throughout the session as lingering concerns over global demand and rising U.S. output offset expectations for major producers to further curtail supply. U.S. crude oil futures were down 0.4% at $54.72 a barrel.

At 9:17 a.m. (1317 GMT), the Canadian dollar was trading 0.3% lower at 1.3287 to the greenback, or 75.26 U.S. cents. The currency touched its weakest intraday level since last Thursday at 1.3290.

Canadian government bond prices were mixed across the yield curve in sympathy with U.S. Treasuries after data showed a pickup in U.S. inflation in July.

The 10-year was up 6 Canadian cents to yield 1.193%. Last Wednesday, the 10-year yield touched its lowest intraday level since June 2017 at 1.122%. (Reporting by Fergal Smith; editing by Jonathan Oatis) ((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.

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More