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Canadian dollar dips as higher bond yields dominate FX market

Message : Required fields TORONTO (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday, pulling back from an earlier one-week high as a sell-off on Wall Street driven by higher bond yields offset surging oil prices. The safe-haven U.S. dollar rallied against a basket of major currencies and Wall Street slumped after remarks from Federal Reserve Chair Jerome Powell disappointed investors worried about rising longer-term U.S. bond yields. Canada runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to risk appetite. U.S. crude oil futures settled 4.2% higher at $63.83 a barrel after OPEC and its allies agreed to keep production unchanged into April.

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