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Canadian dollar weakens 0.4% against the greenback
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Touches its weakest since last Tuesday at 1.3459
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Price of U.S. oil increases 0.4%
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10-year yield touches a near 4-week high
TORONTO, Feb 6 (Reuters) - The Canadian dollar weakened
to its lowest level in nearly one week against its U.S.
counterpart on Monday as investors worried the Federal Reserve
will raise interest rates further and keep them at higher levels
for longer.
Equity markets globally fell and the safe-haven U.S. dollar gained ground against a basket of major currencies after
Friday's blockbuster U.S. jobs report ran counter to hopes that
the Fed will soon pause its aggressive tightening campaign and
then shift to cutting rates later this year.
The Bank of Canada has already signaled a pause. Its
governor, Tiff Macklem, is due to speak on Tuesday. Investors
will also be looking to the release of Canadian jobs data at the
end of the week for clues on the strength of the domestic
economy.
The Canadian dollar was trading 0.4% lower at 1.3455
to the greenback, or 74.32 U.S. cents, after touching its
weakest since last Tuesday at 1.3459.
The price of oil, one of Canada's major exports, rallied
but was still trading near three-week lows. U.S. crude prices were up 0.4% at $73.66 a barrel.
Canadian government bond yields rose across the curve,
tracking the move in U.S. Treasuries.
The 10-year touched its highest since Jan. 12 at
3.048% before dipping to 3.013%, up 8.4 basis points on the day.
(Reporting by Fergal Smith; Editing by Andrea Ricci)
