Skip to main content

The Canadian dollar weakened to a six-day low against the greenback and lost ground against other G10 currencies on Thursday, as plunging oil prices overshadowed domestic data showing a stronger-than-expected gain for wholesale trade.

At 3:27 p.m. (1927 GMT), the Canadian dollar was trading 0.3% lower at 1.3478 to the greenback, or 74.19 U.S. cents. The currency touched its weakest intraday level since May 17 at 1.3502.

The price of oil, one of Canada’s major exports, slumped to its lowest since March 13 as global trade tensions dampened the demand outlook. U.S. crude oil futures settled 5.7% lower at $57.91 a barrel, its biggest decline since Dec. 24.

Story continues below advertisement

“It is all about oil and the general direction of the U.S. dollar,” said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets.

The U.S. dollar touched its highest level in two years against a basket of currencies, before reversing lower as investors weighed prospects of the Federal Reserve cutting interest rates.

“If the Fed is going to cut, chances are it is likely to be in response to equity market weakness,” Chandler said.

Stocks on Wall Street and U.S. Treasury yields tumbled as investors worried that a spiralling trade war between the United States and China would shackle global growth.

Canadian government bond prices rallied across the yield curve in sympathy with U.S. Treasuries, with the two-year

price up 16 Canadian cents to yield 1.578% and the 10-year rising 86 Canadian cents to yield 1.624%.

Canadian wholesale trade increased by 1.4% in March from February, Statistics Canada said, beating analysts estimates of a 0.9% increase.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter