The Canadian dollar weakened against its U.S. counterpart on Friday after news that U.S. President Donald Trump tested positive for COVID-19 pressured stocks and the price of oil, with the loonie giving up some of this week’s gains.
U.S. stock index futures tumbled and U.S. crude prices were down 4.8 per cent at $36.85 a barrel, with Washington’s failure to reach a new fiscal stimulus deal compounding the impact of increased political uncertainty just four weeks before U.S. elections.
Investors also weighed data showing U.S. job growth slowed more than expected in September. Canada sends about 75 per cent of its exports to the United States, including oil.
The Canadian dollar was trading 0.3 per cent lower at 1.3325 to the greenback, or 75.05 U.S. cents, having traded in a range of 1.3277 to 1.3329. For the week, the loonie was up 0.4 per cent.
It is set to gain further ground against its U.S. counterpart in a year as an expected recovery in the global economy from the coronavirus crisis improves the outlook for commodity prices, a Reuters poll showed.
Canada on Thursday launched a $10 billion, three-year infrastructure plan it said would help the country create jobs and recover from the economic slump caused by the pandemic.
Canadian government bond yields edged lower across the curve in sympathy with U.S. Treasuries on Friday. The 10-year was down 1 basis point at 0.542 per cent.
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