Canadian dollar hits five-week low as Mideast optimism fades
The Canadian dollar has fallen to a five-week low against the U.S. dollar as optimism for a resolution to the Middle East conflict diminishes. Additionally, a measure of small business optimism in Canada has dropped to its lowest level in a year. The situation is compounded by rising oil prices, which are typically beneficial for the Canadian economy, but are currently contributing to inflation concerns.
- ▪The Canadian dollar traded at 1.3775 per U.S. dollar, marking a 0.2 percent decline.
- ▪The Canadian Federation of Independent Business reported a drop in its Business Barometer index to 46.3 in May, the lowest since last year.
- ▪Economists anticipate a 0.6 percent increase in Canadian retail sales for March, following a 0.7 percent rise in February.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThe Canadian dollar weakened to a five-week low against its U.S. counterpart on Thursday as hopes receded of a swift end to the war in the Middle East and after a domestic measure of small business optimism dropped to a one-year low.The loonie was trading 0.2 per cent lower at 1.3775 per U.S. dollar, or 72.60 U.S. cents, after touching its weakest intraday level since April 13 at 1.3800.“The risk of peace talks stalling once more, a pattern we have seen repeatedly in recent months, keeps our bias for USD-CAD risks skewed higher, absent meaningful de-escalation in the Gulf,” strategists at Monex Europe said in a note.The U.S.
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