Canadian dollar posts weekly decline ahead of BoC rate decision

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Canadian dollar posts weekly decline ahead of BoC rate decision
France Dernières Nouvelles,France Actualités
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TORONTO, Oct 20 - The Canadian dollar rose against its U.S. counterpart on Friday but the move was modest as stock markets fell and domestic data showed a decline in retail sales, cementing expectations that the Bank of Canada will remain on hold next week.

On Thursday, it touched its weakest intraday level in nearly two weeks at 1.3740. For the week, it was down 0.3%. "The market was dabbling with the idea of another Bank of Canada rate hike but that is looking increasingly remote," said Adam Button, chief currency analyst at ForexLive."Rising global yields will complicate the Bank of Canada's job in a big way."

The U.S. 10-year yield, a global benchmark, climbed on Thursday to a 16-year high near 5%. Canada could be particularly sensitive to higher borrowing costs after households borrowed heavily during the pandemic to participate in a red-hot housing market.

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