Loonie Weakens as US Yields Rise and Oil Prices Fail to Support
The Canadian dollar weakened on Thursday as rising US Treasury yields and expectations for tighter Federal Reserve policy boosted the greenback.
At around 11:05 a.m. ET, USD/CAD was trading at C$1.411, with the Canadian dollar near 70.8 U.S. cents. This move extends a recent weakening trend for the loonie.
The currency has been pressured by a widening US-Canada yield gap, with investors reassessing the outlook for US interest rates after stronger economic data pushed Treasury yields sharply higher.