Canadian dollar hits two-and-a-half month low as bond yields climb

The Canadian dollar CADUSD weakened to its lowest level in more than two months against its U.S. counterpart on Wednesday as the recent jump in long-term borrowing costs weighed on investor sentiment. The loonie was trading 0.2% lower at 1.3525 to the greenback, or 73.94 U.S. cents, after touching its weakest intraday level since June 1 at 1.3539. Risk-sensitive currencies, such as the Canadian dollar, "remain on the defensive," Karl Schamotta, chief market strategist at Corpay, said in a note. An aversion to risk is becoming more pronounced "as investors grapple with the prospect of higher long-term rates," Schamotta said….