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Canadian dollar slips to 6-week low as COVID-19 worries bolster greenback

·1 min read
A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto
A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto

TORONTO (Reuters) - The Canadian dollar fell to a six-week low against its broadly stronger U.S. counterpart on Wednesday, as data showed euro zone business growth grinding to a halt this month and as investors awaited details of Ottawa's spending proposals.

The loonie <CAD=> was trading 0.4% lower at 1.3351 to the greenback, or 74.90 U.S. cents.

The currency touched its weakest intraday level since Aug. 11 at 1.3355, while the safe-haven U.S. dollar <.DXY> clung to two-month highs against a basket of major currencies as concerns about a second wave of coronavirus infections in Europe met weak economic indicators.

Data showed the euro zone's service industry slamming into reverse..

Canadian Prime Minister Justin Trudeau on Wednesday will unveil what he says is a far-reaching plan to help the economy recover from the coronavirus pandemic while ensuring efforts to fight the outbreak do not falter.

Canada's economic growth has rebounded sharply in recent months, but the country faces a resurgence in coronavirus cases.

The price of oil, one of Canada's major exports, was supported by a report that U.S. fuel inventories fell, although rising crude supply and concern of stalling demand capped gains. U.S. crude <CLc1> prices were up 0.2% at $39.88 a barrel.

Canadian government bond yields were little changed across the curve, with the 10-year <CA10YT=RR> trading at about 0.560%.

(Reporting by Fergal Smith; editing by Jonathan Oatis)