Canadian dollar hits 6-week low as Wall Street tumbles
(Adds dealer quotes and details throughout; updates prices)
* Canadian dollar weakens 0.8% against the greenback
* Loonie touches its weakest since Aug. 12 at 1.3320
* Canadian new house prices rise 2.1% year-over-year in August
* Canadian bond yields ease across a flatter curve
By Fergal Smith
TORONTO, Sept 21 (Reuters) - The Canadian dollar fell to a near six-week low against its broadly stronger U.S. counterpart on Monday, as oil prices declined more than 4% and rising coronavirus infections weighed on investor sentiment.
"The USD has caught a risk-off, safe-haven bid due to the turbulence in the equity markets," said Tony Valente, a senior FX dealer at AscendantFX. "It seems that equity markets haven’t finished their September correction yet."
Wall Street's main indexes slid to seven-week lows as renewed lockdown measures in some countries due to the spread of the virus cast doubt over economic recovery.
The sell-off in oil, one of Canada's major exports, intensified pressure on the loonie, Valente said.
U.S. crude oil futures
Canada has also seen a rise in coronavirus infections. On Saturday, Ontario, the country's most-populous province, cracked down on private social gatherings.
Canadian new house prices rose 2.1% year-over-year in August, which was the largest increase since March 2018, Statistics Canada said on Monday.
Canadian government bond yields were lower across a flatter
curve in sympathy with U.S. Treasuries. The 10-year
Canadian Prime Minister Justin Trudeau is scheduled to unveil on Wednesday what he says is a far-reaching plan to help Canada recover from the coronavirus pandemic. (Reporting by Fergal Smith; Editing by Will Dunham and Peter Cooney) ((email@example.com; +1 416 941 8113;)) Keywords: CANADA FOREX/ (UPDATE 1)
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