By Fergal Smith TORONTO (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday as investors weighed the economic impact of Russia-Ukraine tensions, and the price of
February 22, 2022
By Fergal Smith
TORONTO (Reuters) – The Canadian dollar was little changed against its U.S. counterpart on Tuesday as investors weighed the economic impact of Russia-Ukraine tensions, and the price of oil, one of Canada’s major exports, gave back some of its earlier gains.
The loonie was nearly unchanged at 1.2750 to the U.S. dollar, or 78.43 U.S. cents, after trading between 1.2719 and 1.2782.
“The Canadian dollar has largely been at the mercy of oil markets today,” said Simon Harvey, head of FX analysis for Monex Europe and Monex Canada.
Oil touched its highest since 2014 at $96 a barrel after Moscow ordered troops into two breakaway regions in eastern Ukraine but settled well below that level at $92.35 a barrel, up 1.4% on the day.
Speculators have cut their bullish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission showed on Friday.
Wall Street pared losses as U.S. President Joe Biden announced the first wave of sanctions against Russia for what he said was the beginning of an invasion of Ukraine.
Meanwhile, the United States Trade Representative’s office said it opposed Canada’s plan to enact a digital services tax and urged Canada to abandon plans for such a step.
Canadian government bond yields were higher across the curve following Monday’s market holiday. The 10-year rose 4 basis points to 1.916%, moving back in sight of the three-year high notched last Wednesday at 1.995%.
(Reporting by Fergal Smith; Editing by Tomasz Janowski and Will Dunham)
