Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Canadian dollar gains stall as U.S. inflation heats up

10/13/2021 | 09:38am EST
FILE PHOTO: A Canadian dollar coin, commonly known as the

TORONTO (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Wednesday but gains were capped ahead of a 2-month high that was notched the day before, as oil prices fell and investors weighed data showing a faster rate of U.S. inflation.

The loonie was trading 0.1% higher at 1.2454 to the greenback, or 80.30 U.S. cents, after trading in a range of 1.2436 to 1.2478.

On Tuesday, the currency touched its strongest level since July 30 at 1.2430 as the gap widened between Canadian and U.S. bond yields.

U.S. consumer prices increased solidly in September and are poised to rise further in the months ahead amid a surge in the costs of energy products, which would cast doubts on the Federal Reserve's view that high inflation is transitory.

The U.S. dollar held close to a one-year high against a basket of peer currencies amid rising expectations the Fed will announce a tapering of stimulus next month.

The price of oil, one of Canada's major exports, fell as expectations grew that oil demand growth will fall as inflation and supply chain issues strain major economies. U.S. crude oil futures were down 1.4% at $79.55 a barrel.

Meanwhile, the United States will lift restrictions at its land borders with Canada and Mexico for fully vaccinated foreign nationals in early November which could relieve some economic pressures. Curbs on non-essential travelers have been in place since March 2020 to address the COVID-19 pandemic.

Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 2-year touched its highest since March 2020 at 0.802% before dipping to 0.779%, up 3.2 basis points on the day.

The gap between it and its U.S. equivalent widened 1 basis point to nearly 41 basis points, its widest since January 2015.

(Reporting by Fergal Smith; Editing by Andrea Ricci)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / CANADIAN DOLLAR (AUD/CAD) 0.00% 0.91032 Delayed Quote.-7.15%
BRITISH POUND / CANADIAN DOLLAR (GBP/CAD) 1.15% 1.70523 Delayed Quote.-3.00%
CANADIAN DOLLAR / JAPANESE YEN (CAD/JPY) 0.01% 88.595 Delayed Quote.12.02%
CANADIAN DOLLAR / SWISS FRANC (CAD/CHF) 0.09% 0.72146 Delayed Quote.6.32%
EURO / CANADIAN DOLLAR (EUR/CAD) 1.95% 1.44714 Delayed Quote.-8.64%
LONDON BRENT OIL -11.41% 72.86 Delayed Quote.59.01%
NEW ZEALAND DOLLAR / CANADIAN DOLLAR (NZD/CAD) 0.62% 0.87199 Delayed Quote.-5.12%
US DOLLAR / CANADIAN DOLLAR (USD/CAD) 0.02% 1.279 Delayed Quote.-0.50%
WTI -11.91% 68.16 Delayed Quote.62.58%
Latest news "Economy & Forex"
03:13aCzech Republic reports 20,315 daily coronavirus cases
RE
02:30aGhana's parliament votes down 2022 budget over electronic tax
RE
02:20aMINISTRY OF FINANCE OF REPUBLIC OF INDIA : Income Tax Department conducts search operations on two major real estate developers of Ludhiana
PU
02:10aBANK OF GHANA : Risk Management Directive
PU
02:10aExplanatory Notes on the Revised Risk Management Directive
PU
01:57aELON MUSK : India tells public to shun Musk-backed Starlink until it gets licence
RE
01:55aMalaysia police to look into claim ATA whistleblower beaten by police
RE
12:45aIndia's Paytm Sept net loss widens, says maintains growth momentum
RE
12:30aPRIME MINISTER JANEZ JANŠA : ASEM is a unique forum for promoting cooperation between Europe and Asia
PU
11/26Black Friday draws U.S. shoppers but many shun stores for online
RE
Latest news "Economy & Forex"