(Updates prices and adds quotations and details from strategists throughout.)
* The Canadian currency is down 0.4 percent against the US dollar.
* The loonie falls to 1.2590, its lowest level since April 21. * The price of US oil closes 1% higher. * Canadian bond yields fall across a flatter curve.
Fergal Smith contributed to this article.
(Reuters) – TORONTO, July 8 (Reuters) – On Thursday, the Canadian currency fell for a fourth day against the US dollar as the COVID-19 Delta variant pandemic battered investor mood, offsetting rising oil prices.
The Canadian dollar was trading 0.4 percent lower against the US dollar at 1.2525, or 79.84 cents, adding to a streak of losses since the start of the week. At 1.2590, it hit its lowest intraday level since April 21.
“The loonie’s current depreciation is mostly due to a loss of risk appetite,” said Simon Harvey, senior FX market analyst for Monex Europe and Monex Canada.
“As the Delta variant continues to cause disruptions in significant sectors of the global economy, market indicators across the board are pointing to concerns about growth prospects.”
Global stock markets sank, while safe haven assets such as US Treasury bonds, the Japanese yen, and the Swiss franc rose.
Because Canada is a significant producer of commodities such as oil and copper, the loonie is sensitive to global economic prospects.
After U.S. government statistics indicated a considerably larger drop in crude and gasoline stockpiles than predicted, copper prices fell, but oil prices rose 1% to $72.94 per barrel.
On Friday, the Canadian jobs data for June will be released, which could provide insight into the Bank of Canada’s policy stance. Some analysts believe the Bank of Canada may reduce bond purchases again when it announces interest rates next week.
Bond rates in Canada were lower over a flatter curve, mirroring the trend in Treasuries. The 10-year yield fell to 1.239 percent, its lowest level since February 24, before rising to 1.260 percent, down 3.6 basis points on the day.
(Fergal Smith contributed reporting; Jonathan Oatis and Peter Cooney edited the piece.)/n
