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CANADA FX DEBT-Canadian dollar extends daily losing streak as BoC minutes show patience
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CANADA FX DEBT-Canadian dollar extends daily losing streak as BoC minutes show patience
May 13, 2026 1:36 PM

* Canadian dollar falls 0.1% against the greenback

* Posts sixth straight daily decline

* BoC minutes show bank feels it could be patient on

rates

* Canadian bond yields edge lower across the curve

By Fergal Smith

TORONTO, May 13 (Reuters) - The Canadian dollar edged

lower for a sixth straight day against its U.S. counterpart on

Wednesday, as the greenback posted broad-based gains and minutes

from the Bank of Canada's latest policy decision showed the

central bank was content to remain on the sidelines.

The loonie was trading 0.1% lower at 1.3705 per U.S.

dollar, or 72.97 U.S. cents, after moving in a range of 1.3685

to 1.3718.

The BoC's Governing Council felt it could afford to be patient

and hold interest rates at 2.25% ahead of its April 29

announcement, while acknowledging the situation might change

quickly.

"The Bank of Canada is comfortable standing pat for now amid

heightened uncertainty on both sides of the outlook," Benjamin

Reitzes, Canadian rates & macro strategist at BMO Capital

Markets, said in a note.

"We'll likely need to see a few inflation reports for

policymakers to be convinced that price pressures are broadening

... while the rise in the unemployment rate suggests the last

thing the economy needs is higher policy rates."

Data on Friday showed that Canada's economy lost 17,700 jobs

in April and the unemployment rate rose to a six-month high of

6.9%, indicating continued weakness in a labor market that has

struggled in the face of trade uncertainty.

Still, investors are betting that the Bank of Canada will

raise interest rates twice by December as the recent surge in

oil prices boosts the inflation outlook.

The price of oil settled 1.1% lower at $101.02 a barrel, giving

back some recent gains. Oil is one of Canada's major exports.

The U.S. dollar rose against a basket of major

currencies, supported by the latest hot U.S. inflation reading.

Canadian government bond yields edged lower across a flatter

curve. The 10-year was down 1.5 basis points at

3.577%, after earlier touching an eight-day high at 3.610%.

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