TORONTO — The Canadian dollar weakened to
its lowest level in nearly two years against its U.S.
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
Canada’s economy performed better than some of its G7 peers
in the first half of 2022 but has showed signs of losing
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
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
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
(Reporting by Fergal Smith; editing by Jonathan Oatis)