* The Canadian currency falls 0.7 percent against the US dollar.
* The loonie falls to 1.2590, its lowest level since April 21. * The price of US oil falls 0.2 percent. * Canadian bond yields fall across a flatter curve.
(Reuters) – TORONTO, July 8 (Reuters) – On Thursday, the Canadian dollar sank to its lowest level versus the US dollar in more than two months, as commodities prices fell and the growing spread of the COVID-19 Delta version weighed on investor mood.
Global stock markets plummeted as a result of China’s escalating crackdown on the IT sector and the risk that the measures might stymie global economic recovery.
Because Canada is a significant producer of commodities such as oil and copper, the loonie is sensitive to global economic prospects.
Copper prices fell after the US Federal Reserve confirmed plans to tighten monetary policy sooner than expected, while US crude prices declined 0.2 percent to $72.09 a barrel as discussions between major producers broke down, raising the prospect of the existing output pact being scrapped.
The Canadian dollar was trading 0.7 percent lower against the US dollar, or 79.61 cents, adding to a streak of losses since the beginning of the week. At 1.2590, it hit its lowest intraday level since April 21.
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.
Canadian government bond yields fell across the curve, mirroring the trend in US Treasuries. The 10-year yield fell to 1.239 percent, its lowest level since February 24, before recovering somewhat to 1.246 percent, down 5 basis points on the day.
(Fergal Smith contributed reporting, and Jonathan Oatis edited the piece.)/n
