CANADA FX DEBT-Canadian dollar hits 2-week low as global shares slide

  • 1/27/2021
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* Canadian dollar falls 0.8% against the greenback * Loonie hits its lowest since Jan. 11 at 1.2822 * Price of U.S. oil decreases 0.6% * Canadian bond yields ease across the curve TORONTO, Jan 27 (Reuters) - The Canadian dollar fell to its lowest in more than two weeks against its broadly stronger U.S. counterpart on Wednesday, as rising coronavirus cases weighed on investor sentiment and ahead of a Federal Reserve interest rate decision. The loonie was trading 0.8% lower at 1.2785 to the greenback, or 78.22 U.S. cents, having touched its weakest since Jan. 11 at 1.2822. Shares fell globally as investors turned more cautious about COVID-19 and stretched stock valuations, with the Fed"s first meeting of the year and earnings from tech giants also in focus. Global coronavirus cases surpassed 100 million as infections rise in Europe and Americas and the Asia-Pacific region scrambles to contain fresh outbreaks, while governments hurry to procure adequate vaccine supplies. Canada will soon make foreign travel harder in a bid to clamp down on the coronavirus, Prime Minister Justin Trudeau said on Tuesday without giving details. The U.S. dollar rallied against a basket of major currencies after comments by a European Central Bank official pressured the euro , while the price of oil, one of Canada"s major exports, was down 0.6% at $52.28 a barrel. Canadian government bond yields were lower across the curve in tandem with U.S. Treasuries. The 10-year fell 2 basis points to 0.798%. Canada"s GDP report for November is due on Friday which could guide expectations for interest rates. (Reporting by Fergal Smith; Editing by Alexander Smith)

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