2022. 9. 28. 01:14ㆍ■ 국제/CANADA
C$ rebounds from 2-year low as Wall Street rallies (msn.com)
C$ rebounds from 2-year low as Wall Street rallies
C$ rebounds from 2-year low as Wall Street rallies
www.msn.com
TORONTO (Reuters) - The Canadian dollar strengthened against the greenback on Tuesday as some calm returned to global financial markets after they were buffeted by the recent surge in bond yields, with the currency rebounding from a two-year low the day before.
The loonie was trading 0.2% higher at 1.37 to the U.S. dollar, or 72.99 U.S. cents, after trading in a range of 1.3641 to 1.3741. On Monday, it touched its weakest intraday level since May 2020 at 1.3808.
The U.S. dollar took a pause in what has been a relentless climb higher, while Wall Street and the price of oil, one of Canada's major exports, rallied. U.S. crude prices were up 2.3% to $78.50 a barrel.
Investors have worried that higher borrowing costs could tip some major economies into recession as central banks hike interest rates aggressively to tackle inflation.
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Inflation is too high in Canada, so the Bank of Canada needs to increase interest rates to slow spending and give the economy time to catch up, Governor Tiff Macklem said on Monday.
The BoC has tightened by 300 basis points since March, lifting its policy rate to a 14-year high of 3.25%. Money markets expect rates to move up by another three-quarters of a percentage point by the end of the year.
Canadian GDP for July, due on Thursday, could offer further clues on the outlook for interest rates.
Canadian government bond yields were higher across much of a steeper curve. The 10-year rose 3.7 basis points to 3.264%, approaching the top of its range since July.
(Reporting by Fergal Smith; Editing by Alistair Bell)