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C$ hits 22-month low as equity markets slide


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TORONTO — The Canadian dollar weakened to

its lowest level in nearly two years against its U.S.

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counterpart on Friday as the prospect of further central bank

tightening weighed on investor sentiment and domestic data

showed wholesale trade falling in July.

Equity markets globally extended this week’s

declines as investors braced for a U.S. interest rate hike next

week amid more warning signs pointing to a global economic

slowdown.

Canada’s economy performed better than some of its G7 peers

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in the first half of 2022 but has showed signs of losing

momentum.

Canadian wholesale trade decreased by 0.6% in July from June

on the lower sales in personal and household goods, as well as

the building material and supplies subsector, Statistics Canada

said.

Separate data showed that Canadian housing starts fell 3% in

August compared with the previous month.

The Canadian dollar was trading 0.5% lower at 1.3290

per U.S. dollar, or 75.24 U.S. cents, after touching its weakest

since November 2020 at 1.3307.

For the week, the loonie was on track to fall 2%, which

would be its biggest weekly decline since August 2021, as

hotter-than-expected U.S. inflation data triggered sharp gains

for the U.S. dollar against a basket of major currencies.

The greenback added to those gains on Friday, while the

price of oil, one of Canada’s major exports, seesawed after

tumbling in the previous session. U.S. crude oil futures

were down 0.1% at $85.02 a barrel.

Canadian government bond yields were higher across the

curve.

The 2-year touched its highest since December

2007 at 3.870% before dipping to 3.850%, up 3.5 basis points on

the day. The 10-year was up 2.3 basis points at

3.172%.

(Reporting by Fergal Smith; editing by Jonathan Oatis)



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