Canadian dollar hits 2-month low as Russia attacks Ukraine

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  • Canadian dollar weakens 0.7% against the greenback
  • Touches weakest level since Dec. 27 at 1.2847
  • Canadian factory sales likely rose 1.3% in January
  • Canadian 10-year yield falls 7.4 basis points

TORONTO, Feb 24 (Reuters) - The Canadian dollar weakened to its lowest level since December against its U.S. counterpart on Thursday as Russia's invasion of Ukraine triggered a flight to safety in global financial markets.

Stock markets globally (.WORLD) slumped and the safe-haven U.S. dollar rallied after the biggest attack by one country against another in Europe since World War Two. read more

The Canadian dollar was trading 0.7% lower at 1.2819 to the greenback, or 78.01 U.S. cents, after touching its weakest intraday level since Dec. 27 at 1.2847.

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Still, the commodity-linked loonie fared better than most other G10 currencies. Only the Japanese yen and the Swiss franc performed better against the greenback.

The price of oil , one of Canada's major exports, climbed 7.60% to $99.10 a barrel as the invasion added to concerns about disruptions to global energy supply. read more

Higher sales in the petroleum and coal product industry helped drive a 1.3% increase in Canadian factory sales in January from December, a preliminary estimate showed. read more

Investors stuck with bets for the Bank of Canada to hike interest rates next Wednesday for the first time since October 2018, but longer-term rates tumbled, tracking the move in U.S. Treasuries.

The 10-year yield was down 7.4 basis points to 1.900%.

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Reporting by Fergal Smith; editing by Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.