* Canadian dollar weakens 0.3% against the greenback
* Touches its weakest level since April 28 at 1.2399
* Price of U.S. oil falls 0.3%
* Canadian bond yields rise across the curve
TORONTO, June 18 (Reuters) – The Canadian dollar fell to a
seven-week low against its U.S. counterpart on Friday and was on
track for its biggest weekly decline since March last year, as
the Federal Reserve’s more hawkish stance weighed on stock
markets and commodity prices.
Benchmark copper has fallen nearly 8% this week,
while oil fell on Friday for a second straight session,
down 0.30% at $70.83 a barrel.
Canada is a major producer of commodities, which have
benefited from Fed stimulus. On Wednesday, the U.S. central bank
signaled interest rate hikes could begin in 2023, sooner than
previous guidance of 2024.
The Canadian dollar was trading 0.3% lower at
1.2388 to the greenback, or 80.72 U.S. cents, after earlier
touching its weakest level since April 28 at 1.2399. For the
week, it was down 1.8%.
Domestic data showed new home prices rising in May at an
annual rate of 11.3%, the largest increase since November 2006.
On Wednesday, Bank of Canada Governor Tiff Macklem said the
central bank is starting to see signs that the country’s red-hot
housing market is cooling down, although a return to normality
will take time.
Canadian government bond yields were higher across the
curve, with the 10-year up 1.5 basis points at
1.409%.
The gap between the 10-year and 2-year rates widened by
about half a basis point, after hitting on Thursday its
narrowest in nearly four months at 1%.
(Reporting by Fergal Smith; editing by Jonathan Oatis)
