Loonie Surges Against Greenback Amid Treasury Bond Selloff
The Canadian dollar continued its upward trend on Thursday, outperforming the US dollar amid a selloff in treasury bonds. The loonie finished at US$0.7252 or US$1=C$1.3789 compared to Wednesday's close of US$0.7213 or US$1=C$1.3863.
Meanwhile, the US dollar index retreated 0.592 of a point at 98.960. The strength of the Canadian dollar was likely due in part to its safe-haven status and the country's relatively stable economy.
The price of crude oil also saw an increase on Thursday, with West Texas Intermediate adding 71 cents at US$91.72 per barrel, and Brent crude up 17 cents at US$95.80. However, the gains were tempered by hopes of a Russia-Ukraine peace deal, which could lead to increased oil production.
Statistics Canada reported that the country's July merchandise trade surplus shrank to C$769 million from C$4.2 billion in June. The services trade balance switched to a C$300 million surplus from a C$200 million deficit during July.