Canadian dollar hits 18-month low as France worries boost greenback
The Canadian dollar weakened to an 18-month low against its US counterpart as the greenback posted broad-based gains and domestic data showed the services sector contracting for a fourth straight month. The loonie was trading 0.1% lower at 1.4257 per US dollar, or 70.14 US cents, after touching its weakest intraday level since April 2025 at 1.4293.
By Fergal Smith TORONTO, Oct 5 (Reuters) — The Canadian dollar weakened to an 18-month low against its US counterpart on Monday as the greenback posted broad-based gains and after domestic data showed the services sector contracting for a fourth straight month. 4293. "The moves in CAD were largely dictated by developments in Europe as opposed to domestic developments here in Canada," said George Davis, chief technical strategist at RBC Capital Markets. " The US dollar rose against a basket of major currencies as concerns about France's ability to rein in its budget deficit weighed on the euro.
Canada's services economy contracted in September as tariffs and the war in the Middle East contributed to economic uncertainty, S&P Global's Canada services PMI data showed. 8 in August but remained below the 50 no-change mark. The price of oil, one of Canada's major exports, fell after crude exports from the Middle East increased and the Group of Seven nations pledged to boost supplies. 43 a barrel.
Speculators have raised their bearish bets on the Canadian dollar, data from the US Commodity Futures Trading Commission showed on Friday. Non-commercial net short positions rose to 78,671 contracts as of September 29, up from 53,210 in the prior week. Canadian bond yields moved higher across a steeper curve. 042%.
The predominantly French-speaking Canadian province of Quebec was headed to the polls on Monday and while a separatist party looks set to win, the campaign's focus has been more on US President Donald Trump than on independence. com; +1 647 480 7446)