Glacier FarmMedia – The Canadian dollar stumbled on Thursday due to lower bond yields, a new trade deal between the United States and China and a stronger U.S. greenback.
The loonie was at US$0.7144 or US$1=C$1.3998 as of 8:41 a.m. CDT, compared to Wednesday’s close at US$0.7186 or US$1=C$1.3916. Ten-year bond yields from the Canadian government dropped 0.4 basis points to 3.154 per cent.
The Bank of Canada announced on Wednesday it cut its key interest rates by 25 basis points at 2.25 per cent.
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The U.S. Dollar Index was up 0.32 of a point at 99.54. The Federal Reserve also cut its key interest rates by 25 basis points on Wednesday.
Earlier today, U.S. President Donald Trump said China will allow the export of rare earth minerals and start buying U.S. soybeans. The total combined tariff rate on China was also lowered from 57 per cent to 47 per cent.
Crude oil prices were lower as observers examine the new trade deal and increasing crude oil supply.
Brent crude oil was down US$0.55 per barrel at US$64.37/barrel. West Texas Intermediate dropped US$0.51 at US$59.97/barrel.
The TSX/S&P Composite Index added 74.02 points at 30,218.80.
Gold lost US$21.50 per ounce at US$3,979.20.
