Canadian dollar falls 0.1% against the greenbackCurrency heads for 0.5% weekly declineFactory PMI remains below 50 no-change mark10-year yield rises 3.7 basis points to 3.472%<\/p>\n
TORONTO, Jan 2 (Reuters) – The Canadian dollar added to its weekly decline against the U.S. dollar on Friday as domestic data showed that the manufacturing sector contracted for an 11th straight month in December.<\/p>\n
The loonie was trading 0.1% lower at 1.3740 per U.S. dollar, or 72.78 U.S. cents, after moving in a range of 1.3701 to 1.3747.<\/p>\n
Sign up here.<\/a><\/p>\n For the week, the currency was on track to decline 0.5%. It was up 4.8% for the year just ended.<\/p>\n “Canada\u2019s economy starts 2026 under a cloud as underlying domestic demand remains weak,” economists at TD Economics, including Andrew Hencic, said in a note.<\/p>\n “Trade losses with the U.S. have been primarily offset by gains in resource, metals, and agricultural trade, while key manufactured goods still face tariff challenges.”<\/p>\n The S&P Global Canada Manufacturing Purchasing Managers’ Index<\/a> (PMI) edged up to 48.6 last month from 48.4 in November, extending its streak of readings below the 50 threshold since February. A reading below 50 indicates contraction in the sector.The price of oil<\/a> , one of Canada’s major exports, fell 0.7% to $57.00 a barrel as investors weighed oversupply concerns against geopolitical risks.The U.S. dollar<\/a> kicked off 2026 on a stronger note after struggling against most currencies last year, as traders awaited a flurry of U.S. economic data next week, including several reports on the labor market, to gauge the path of interest rates.<\/p>\n Canadian government bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 3.7 basis points at 3.472%.<\/p>\n Reporting by Fergal Smith in Toronto; Editing by Matthew Lewis<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n