Canadian Dollar Slips as Oil Tops $100 per Barrel

The Canadian dollar slipped against the US greenback on Thursday and bond yields jumped as oil prices surged past $100 per barrel for the first time since May. This development has added to investor concerns about inflation.

U.S. Treasury yields climbed after producer price data pushed up expectations for a Federal Reserve interest rate hike next week. The rally in oil prices also fueled inflation worries, with Priscilla Thiagamoorthy, a senior economist at BMO Capital Markets, noting that 'inflation pressures are heating up and broadening beyond energy, creating a more challenging backdrop for the Fed.'

U.S. crude oil futures traded 5.8% higher at $101.65 per barrel due to concerns about supply disruptions sparked by the biggest spike in attacks on shipping since the Iran war began.

The Canadian dollar, or loonie, was trading 0.1% lower at 1.3810 per US dollar, or 72.41 US cents, after moving in a range of 1.3801 to 1.3835.