Forex – Loonie Falls on Declining Oil Prices; U.S. Dollar Steady

© Reuters. – The Canadian dollar fell on Wednesday as falling oil prices weighed and the Bank of Canada kept rates steady as expected.

Oil, one of Canada’s biggest exports, fell as trade tensions between the U.S. and China exacerbated. China signaled it would use rare earth elements to put pressure on the U.S., increasing fears that the stand-off could cause a global recession.

slumped 2.1% to $57.89 a barrel, while fell 0.1% to 1.3505 by 10:35 AM ET (14:35 GMT).

Meanwhile, the greenback inched up 0.1% to 97.935 amid a U.S. equity selloff and a steep inversion of the yield curve. The U.S. Treasury note fell further below the 3-month rate, which is seen as a leading indicator of a recession.

The , which measures the greenback’s strength against a basket of six major currencies, gained 0.1% to 97.963.

The greenback was higher against the safe-haven Japaese yen, with up 0.03% to 109.38.

Elsewhere, the euro fell on the stronger dollar, with down 0.2% to 1.1141, while cable was flat, with at 1.2650.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.