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CANADA FX DEBT-Canadian dollar hits 14-month low as tech selloff spurs safe-haven demand
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CANADA FX DEBT-Canadian dollar hits 14-month low as tech selloff spurs safe-haven demand
Jun 23, 2026 12:18 PM

* Canadian dollar falls 0.4% against the greenback

* Touches its weakest since April 2025 at 1.4217

* Price of oil declines 0.7%

* Bond yields ease across the curve

By Fergal Smith

TORONTO, June 23 (Reuters) - The Canadian dollar weakened to

a 14-month low against its U.S. counterpart on Tuesday as oil

prices fell and a drop in technology stocks bolstered safe-haven

demand for the greenback.

The loonie was trading 0.4% lower at 1.4214 per U.S.

dollar, or 70.35 U.S. cents, after touching its weakest intraday

level since April last year at 1.4217.

* "The loonie has been on the backfoot for several weeks

with well-documented reasoning of widening yield differentials

in favor of the USD, slowing growth, trade uncertainty or the

uneasy status quo and a mostly asymmetric risk response to the

Iran war," said Amo Sahota, director at Klarity FX in San

Francisco.

* "Today it feels like a bruising to an already beaten

currency with traders searching for safe haven as tech stocks

and chips struggle to hold on to their massive valuations,"

Sahota said.

* The Nasdaq and the S&P 500 fell to over one-week lows,

dragged down by sharp losses in semiconductor stocks as

investors braced for a more hawkish Federal Reserve and

scrutinized growing debt-funded AI spending.

* The safe-haven U.S. dollar rose against a basket of major

currencies, while the price of oil, one of Canada's major

exports, was trading 0.7% lower at $73.71 a barrel.

* Investors kept a close watch on crude flows through the

Strait of Hormuz following signs of progress in U.S.-Iran peace

talks.

* Bank of Canada Governor Tiff Macklem said the latest

inflation reading showed price increases were concentrated in

energy, but admitted that food inflation was a concern.

* "Comments today by BoC Macklem provide little to lean

towards CAD strength but do signal some relief on rising

inflation concerns," Sahota said.

* Data on Monday showed that Canada's annual inflation rate

rose more than expected to 3.2% in May but measures of

underlying inflation closely followed by the BoC were more

subdued.

* Canadian government bond yields moved lower across the

curve, with the 10-year down 2.7 basis points at

3.442%.

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