Canadian dollar falls 0.8% against the greenback
Touches its weakest since February 4 at 1.4442
Price of oil rises 2.2%
Bond yields trade mixed across the curve
By Fergal Smith
TORONTO, Feb 27 (Reuters) - The Canadian dollar hit a three-week low against the greenback on Thursday as U.S. President Donald Trump said that tariffs on Canadian goods will go into effect on March 4, clearing up some confusion on the timing and dashing hopes of a reprieve.
The loonie CAD= was trading 0.8% lower at 1.4425 per U.S. dollar, or 69.32 U.S. cents, after touching its weakest intraday level since February 4 at 1.4442. It was the fifth straight day of declines for the currency.
Trump said that his proposed 25% tariffs on Mexican and Canadian goods will go into effect next week as scheduled because drugs are still pouring into the U.S. from those countries.
On Wednesday, Trump's comments on the matter seemed to suggest that he may push the deadline back for about one month until April 4.
"If you were positioned for relief, this is a slap in the face," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. "It's an angry, get me out of the market, kind of move."
The loonie touched a 22-year low of 1.4793 on February 3 in anticipation of tariffs which were then delayed.
The price of oil CLc1, one of Canada's major exports, was up 2.2% at $70.11 a barrel as supply concerns resurfaced after Trump revoked a license granted to U.S. oil major Chevron CVX.N to operate in Venezuela.
Canadian fourth-quarter gross domestic product data, due on Friday, could help guide expectations for further interest rate cuts by the Bank of Canada. Economists forecast annualized growth of 1.8%.
Canadian bond yields were mixed across a steeper curve, with the 2-year CA2YT=RR down 1.4 basis points at 2.636%.
(Reporting by Fergal Smith; Editing by Kirsten Donovan)
((fergal.smith@thomsonreuters.com; +1 647 480 7446;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.