February 12, 2020 / 1:17 PM / 6 days ago

CANADA FX DEBT-Canadian dollar climbs to one-week high as virus fears ebb

    * Canadian dollar rises 0.2% against the greenback
    * Loonie touches a one-week high at 1.3264
    * Price of U.S. oil increases 
    * Canada 10-yr yield hits near one-week high at 1.395%

    By Fergal Smith
    TORONTO, Feb 12 (Reuters) - The Canadian dollar strengthened
to a one-week high against its U.S. counterpart on Wednesday as
reduced concern about the economic impact of the coronavirus
outbreak boosted stocks and the price of oil, one of Canada's
major exports.
    At 7:44 a.m. (1244 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3263 to the greenback, or 75.40 U.S.
cents. The currency touched its strongest intraday level since
Feb. 5 at 1.3264.
    "The move reflects a pick-up in risk appetite in global
markets as concerns about the impact of the coronavirus outbreak
recede," analysts at Action Economics said in a note. "A
reported dip in new coronavirus cases in China has been tonic
for investors."
    Global stock markets          and oil prices climbed as
China reported its lowest daily number of new coronavirus cases
since late January. The news stoked investor hopes that fuel
demand in the world's second-largest oil consumer may begin to
recover from the epidemic.                         
    U.S. crude oil futures        were up 1.7% at $50.77 a
barrel.
    On Monday, the loonie hit a four-month low at 1.3330. The
currency has been pressured since the beginning of the year by
lower commodity prices and a more dovish stance from the Bank of
Canada.             
    Bank of Canada Governor Stephen Poloz is due to participate
in a panel discussion on Thursday in Melbourne, Australia, which
could offer clues on the outlook for interest rates.
    Canadian National Railway Co         , the country's biggest
rail road, said on Tuesday it would be forced to shut parts of
its network unless rail line blockades in protest against a
natural gas pipeline in British Columbia are removed. The
railway transports more than C$250 billion worth of goods
annually.                 
    Canadian government bond yields rose across a steeper yield
curve in sympathy with U.S. Treasuries on Wednesday. The 10-year
yield was up 1.7 basis points at 1.376%, having touched its
highest intraday level since Feb. 6 at 1.395%.

 (Reporting by Fergal Smith;Editing by Bernadette Baum)
  
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