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Loonie Weakens as US Yields Rise and Oil Prices Fail to Support

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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.

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