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Forex, News

C$ hits 5-day low as geopolitical tensions worry investors

* Canadian dollar dips 0.3% against the greenback * Price of U.S. oil falls 0.4% * Canadian bond prices trade mixed across the yield curve TORONTO, Aug 13 (Reuters) – The Canadian dollar weakened to a five-day low against its U.S. counterpart on Tuesday as oil prices fell and as investors worried about geopolitical tensions that could hurt the outlook for the global economy. Global stocks fell for a third straight day as fears about a drawn-out global trade war, protests in Hong Kong and a crash in Argentina’s peso currency kept investors huddled in bonds, gold, and the Japanese yen for safety. Canada runs a current account deficit and exports many commodities, including oil, so its economy could be hurt by a slowdown in the flow of global trade or capital. Oil prices dropped after seesawing throughout the session as lingering concerns over global demand and rising U.S. output offset expectations for major producers to further curtail supply. U.S. crude oil futures were down 0.4% at $54.72 a barrel. At 9:17 a.m. (1317 GMT), the Canadian dollar was trading 0.3% lower at 1.3287 to the greenback, or 75.26 U.S. cents. The currency touched its weakest intraday level since last Thursday at 1.3290. Canadian government bond prices were mixed across the yield curve in sympathy with U.S. Treasuries after data showed a pickup in U.S. inflation in July. The 10-year was up 6 Canadian cents to yield 1.193%. Last Wednesday, the 10-year yield touched its lowest intraday level since June 2017 at 1.122%. (Reporting by Fergal Smith; editing by Jonathan Oatis)


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