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CANADA FX DEBT-Canadian dollar edges lower as oil hits five-month low
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CANADA FX DEBT-Canadian dollar edges lower as oil hits five-month low
Oct 16, 2025 1:57 PM

*

Loonie weakens 0.1% against US dollar

*

Home sales fall 1.7% in September

*

Price of oil settles 1.4% lower

*

Bond yields ease across the curve

By Fergal Smith

TORONTO, Oct 16 (Reuters) - The Canadian dollar edged

lower against its U.S. counterpart on Thursday as oil prices

fell and investors worried about the toll U.S. tariffs are

taking on Canada's economy.

The loonie was trading 0.1% lower at 1.4050 per U.S.

dollar, or 71.17 U.S. cents, after moving in a range of 1.4023

to 1.4060. On Tuesday, the currency touched a six-month low at

1.4079.

The United States-Mexico-Canada trade agreement has shielded

much of Canada's exports from U.S. tariffs but some key sectors

such as steel, aluminum and autos face punishing U.S. duties.

"We have started to see Canada chipped away at on the trade

war," said Rahim Madhavji, president at KnightsbridgeFX.com.

STELLANTIS MOVING SOME PRODUCTION

On Tuesday, automaker Stellantis ( STLA ) said it would shift

production of one model to a U.S. plant from a facility in

Brampton, Ontario.

Prime Minister Mark Carney brushed off calls to retaliate

against the United States over its tariffs on some Canadian

exports, saying the two countries were deep in talks over key

sectors.

"Falling oil prices today doesn't help. Falling equities

today also doesn't help," Madhavji said.

Canada is a major producer of oil, which settled 1.4%

lower at $57.46 a barrel, its lowest level in five months. Wall

Street was pressured by signs of weakness in regional banks,

while the U.S. dollar posted declines for a third

straight day against a basket of major currencies.

Domestic housing data for September was mixed. Canadian home

sales fell 1.7% last month from August, ending a string of

increases that began in April, while housing starts rose 14%.

Canadian bond yields moved lower across the curve, tracking

moves in U.S. Treasuries. The 10-year was down 4.3

basis points at 3.081%.

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