Canadian dollar steadies as oil lifts BoC rate hike bets<\/p>\n
* Canadian dollar trades \u200bin a range of 1.3668 to 1.3710<\/p>\n
* BoC leaves \u200bkey interest rate on hold at \u200c2.25%<\/p>\n
* Price of oil settles nearly 7% higher<\/p>\n
* 2-year yield jumps 15.8 basis points to 3.038%<\/p>\n
By Fergal Smith<\/p>\n
TORONTO, April 29 (Reuters) – The Canadian dollar steadied \u2060against \u200bits U.S. counterpart on Wednesday as the greenback posted broad-based gains and a jump in oil prices raised prospects of multiple Bank of Canada interest rate hikes this year.<\/p>\n
The loonie was \u200btrading nearly unchanged at 1.3685 per U.S. \u200cdollar, or 73.07 U.S. cents, after moving in a range of 1.3668 to 1.3710. The Bank of Canada kept its key interest rate unchanged at 2.25%, as expected. The bank said any changes in the rate \u200ccould be \u200bsmall if its projections \u200cfor the economy hold true, but if oil prices stayed \u200bhigh and began pushing up inflation, it \u2060might have to respond with consecutive rate hikes.<\/p>\n
Investors were \u2060pricing in 59 basis points in tightening this year, up from 39 \u200bbasis points before the policy decision, swap market data showed.<\/p>\n
\u201cOil is driving the repricing in the rates curve,\u201d said Adam Button, chief currency analyst at investingLive. \u201cThe market is highly concerned that the U.S. is committed to a long-term blockade.\u201d <\/p>\n
U.S. \u2060President Donald Trump discussed how to mitigate the impact of a possible months-long U.S. blockade of Iran\u2019s ports with U.S. oil companies, a White House official said. The U.S. price of oil, one of Canada\u2019s major exports, settled nearly 7% higher at $106.88 \u2060a barrel as deadlocked U.S.-Iran negotiations made \u200binvestors more concerned about prolonged disruptions to Middle Eastern supply. <\/p>\n
The U.S. \u2060dollar rose against a basket of major currencies as traders kept bets the Federal \u200cReserve will not cut interest rates this year after the U.S. central \u200bbank kept short-term borrowing costs on hold and three dissented against its \u201ceasing bias.\u201d<\/p>\n
Canadian government bond yields moved higher across the curve. The 2-year was up 15.8 basis points at 3.038%, marking \u200bits first move above 3% in more than one month.<\/p>\n","protected":false},"excerpt":{"rendered":"Canadian dollar steadies as oil lifts BoC rate hike bets * Canadian dollar trades \u200bin a range of…\n","protected":false},"author":2,"featured_media":403807,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[276,261,277,251,249,278,138,275,248,268,269,264,250,247,219,84,273,267,259,289,252,253,266,262,263,256,279,257,284,111,285,139,287,282,286,69,280,283,254,271,272,135,270,281,260,145,274,265,258,255,288],"class_list":["post-403806","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-new-zealand","tag-newfoundland-and-labrador","tag-newzealand","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-nz","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/403806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=403806"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/403806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/403807"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=403806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=403806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=403806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}