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Canadian dollar dips 0.1% against the greenback
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Touches its lowest since April 12 at 1.3489
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Price of U.S. oil settles 2.4% lower
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Canadian bond yields ease across curve
(Adds strategist quotes and details throughout; updates prices)
By Fergal Smith
TORONTO, April 20 (Reuters) - The Canadian dollar edged
lower against its U.S. counterpart on Thursday as oil prices
fell and investors took some profit after recent moves higher
for the currency.
The loonie was trading 0.1% lower at 1.3475 to the
greenback, or 74.21 U.S. cents. It touched its weakest since
April 12 at 1.3489 but was still up nearly 3% since mid-March.
After an "aggressive move" higher there is bound to be some
profit-taking, said Bipan Rai, global head of FX strategy at
CIBC Capital Markets.
"The broader trend we still feel is downside for USD-CAD.
That's tied to bearishness on the (U.S.) dollar that seems to be
developing."
Bearish factors for the greenback include a potential peak
in U.S. interest rates and worries about the U.S. debt ceiling,
Rai said.
The price of oil, one of Canada's major exports, settled
2.4% lower at $77.29 a barrel on fears a possible recession
could dent fuel demand and after a rise in U.S. gasoline
inventories.
The impact on the Canadian dollar from the U.S. Federal
Reserve raising interest rates more than the Bank of Canada is
not a "major concern" because of a flexible exchange rate and
the BoC's independent monetary policy, Governor Tiff Macklem
said.
Canadian government bond yields were lower across the curve,
tracking moves in U.S. Treasuries. The 10-year eased
8.5 basis points to 2.978%, extending its pullback from a
six-week high on Tuesday at 3.107%.
(Reporting by Fergal Smith; Editing by Sharon Singleton and
Jonathan Oatis)
