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

News Snapshot:

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....