The Financial Post reports in its Tuesday, Nov. 1, edition that the Canadian dollar weakened against its U.S. counterpart on Monday, giving back some of October's gains, as oil prices fell and investors braced for another supersized interest rate hike this week by the U.S. Federal Reserve.
A Reuters dispatch to the Post reports that decreased after weaker-than-expected factory activity data out of China.
U.S. crude prices were down 1.5 per cent at $86.57 (U.S.) a barrel, while the U.S. dollar advanced against a basket of major currencies at the start of a week packed with data releases and central bank rate-setting meetings.
The Fed is expected to deliver another 75-basis-point rate hike Wednesday. That would be the fourth such increase in succession, but market pricing indicates about a 50-per-cent chance the Fed will then move to a smaller hike of just 50 basis points in December.
Last Wednesday, the Bank of Canada downshifted the pace of its policy tightening, hiking the benchmark rate by half a percentage point to 3.75 per cent rather than by another 75 basis points. BOC Governor Tiff Macklem is due to appear on Tuesday before a Canadian Senate committee.
© 2023 Canjex Publishing Ltd. All rights reserved.