Canadian Dollar Weakens to Six-Month Low as Crude Oil Declinesby
Currency drops third day after disappointing inflation data
On track for worst quarterly result among Group-of-10 peers
The Canadian dollar fell to the weakest level since March on a decline in crude oil prices and increased concern the country’s economy is struggling.
The currency dropped for a third straight day after the country’s August inflation rate reported last week trailed even the most bearish forecast, boosting bets the economy may require added monetary stimulus. A drop in crude, Canada’s second-largest export, outweighed speculation that in Monday’s U.S. presidential debate Hillary Clinton beat Donald Trump, who has vowed to renegotiate the North American Free Trade Agreement.
“It’s mainly an oil story,” said Ian Gordon, a foreign-exchange strategist at Bank of America Corp. in New York. “It’s weighing on the Canadian dollar, despite polls suggesting Clinton came out on top in the debate last night.”
The currency fell as much as 0.2 percent to C$1.3247 per U.S. dollar as of 11:34 a.m. in Toronto, reaching the weakest level since March 28. Its quarter-to-date loss is 2.4 percent, the worst performance among Group-of-10 peers.
Government 10-year bond yields fell three basis points, or 0.03 percentage point, to 0.97 percent. The yield reached a record low 0.91 percent in February.
Oil fell more than 3 percent in New York after Iran said it’s unwilling to freeze output at current levels and wants to raise production to 4 million barrels a day, curbing hopes for OPEC to reach a deal to stabilize markets.