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Canadian dollar pares its decline after hitting two-week low on Saudi dispute

by_fergal_smith
Canadian dollar pares its decline after hitting two-week low on Saudi dispute

By Fergal Smith TORONTO (Reuters) - The Canadian dollar weakened to a two-week low against its U.S. counterpart on Wednesday but pared its losses as investors decided that the impact on the currency of potential Canadian asset sales by Saudi Arabia will be short-lived. The Saudi central bank and state pension funds have instructed their overseas asset managers to dispose of their Canadian equities, bonds and cash holdings "no matter the cost", after Ottawa criticized the arrest of a female activist, the Financial Times reported, citing sources. "There has been some two-way volatility, indicative of not just price pressures on commodity currencies but also, of course, the headlines about Saudi Arabia," said Bipan Rai, executive director and North America head, FX strategy at CIBC Capital Markets.