TORONTO, Sept 1 (Reuters) – The Canadian dollar weakened against its U.S. counterpart on Tuesday as investors bet on a Federal Reserve interest rate hike next \u200bmonth, while a sell-off in global bond markets helped underpin domestic borrowing \u200ccosts ahead of a Bank of Canada interest rate decision.<\/p>\n
The loonie was trading 0.4% lower at 1.3905 per U.S. dollar, or 71.92 U.S. cents, putting it among the biggest \u200bdecliners in the Group of 10 currencies.<\/p>\n
“The loonie is clearly a laggard \u200bin G10 FX today as traders continue to increase bets that \u2060the Fed will have to raise interest rates in September to meet \u200bits 2% target,” said Amo Sahota, director at Klarity FX in San Francisco.<\/p>\n
“Meanwhile \u200bthe BoC is expected to remain on hold tomorrow at 2.25%, but may introduce a slightly more dovish tone given the escalation in the trade war with the U.S.,” Sahota \u200bsaid.<\/p>\n
The U.S. needs to start being serious and stop trying to be tough before \u200btalks on a possible trade deal with Canada can restart, Prime Minister Mark Carney told \u200creporters.<\/p>\n
Investors \u2060expect the Bank of Canada to leave its benchmark interest rate on hold at 2.25% on Wednesday despite recent GDP data that showed the economy growing at a faster pace than the central bank had forecast.<\/p>\n
Canada’s manufacturing sector expanded for \u200ba fifth straight month \u200bin August as \u2060output and employment rose but increased trade tensions cast doubt on the pace of growth being sustained, data on \u200bTuesday showed.<\/p>\n
The price of oil, one of Canada’s major exports, rose \u200bto a \u2060near six-week high as a resumption in fighting between the United States and Iran in the Middle East renewed fears of supply disruptions from the oil-producing region. \u2060U.S. \u200bcrude oil futures were trading 4.4% higher at $89.53 \u200ba barrel.<\/p>\n
The Canadian 10-year yield was up 1.5 basis points at 3.754%, after earlier touching its highest \u200blevel since May 2024 at 3.790%.<\/p>\n
Reporting by Fergal Smith; Editing by Alistair Bell<\/p>\n
Disclaimer:\u00a0The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and\/ or damages arising from the use of this publication.<\/p>\n","protected":false},"excerpt":{"rendered":"TORONTO, Sept 1 (Reuters) – The Canadian dollar weakened against its U.S. counterpart on Tuesday as investors bet…\n","protected":false},"author":2,"featured_media":191546,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[6244,6232,17,6237,6239,6231,6242,6235,6233,6236,381,1632,6243,6234,6223,6245,6228,6246,6230,6225,6226,6224,6227,113,6229,6241,6247,1633,6240,6238],"class_list":["post-191545","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-bank-forecasts","tag-bitcoin-news","tag-canada","tag-central-banks","tag-charts","tag-crypto-news","tag-currency","tag-economic-reports","tag-ethereum-news","tag-forecasts","tag-global-economy","tag-gold","tag-international-policy","tag-interviews","tag-kitco-news","tag-market-nugget","tag-metals","tag-mining-minutes","tag-mining-news","tag-palladium","tag-pgm","tag-platinum","tag-platinum-group-metals","tag-politics","tag-precious-metals","tag-rare-earth-metals","tag-roundups","tag-silver","tag-tech-metals","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/191545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=191545"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/191545\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/191546"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=191545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=191545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=191545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}