Canadian dollar hits 3-week low as domestic demand softens - REUTERS
NOVEMBER 30, 2022
TORONTO (Reuters) - The Canadian dollar weakened to its lowest level in nearly three weeks against its U.S. counterpart on Tuesday as data showed faster-than-expected GDP growth in the third quarter but a decline in domestic demand.
Canada's economy grew at an annualized rate of 2.9% in the third quarter, above analysts' expectations, driven by exports and non-residential structures, Statistics Canada data showed.
Final domestic demand fell 0.6%, while a preliminary estimate showed that October's GDP was unchanged after the economy grew by 0.1% in September compared to August.
Money markets continued to expect a 25 basis point interest rate hike by the Bank of Canada at a policy decision next week, while seeing a 25% chance of a larger move.
The Canadian dollar was trading 0.4% lower at 1.3554 to the greenback, or 73.78 U.S. cents, after touching its weakest since Nov. 10 at 1.3557.
The price of oil, one of Canada's major exports, rose on hopes for a relaxation of China's strict COVID-19 controls after rare protests in Chinese cities over the weekend. U.S. crude prices were up 1.6% at $78.49 a barrel.
Canadian government bond yields were higher across a steeper curve, with the 10-year up 4 basis points at 2.983%.
(Reporting by Fergal Smith; Editing by Bernadette Baum)