Dollar dips amid Brexit uncertainty, U.S. recession fears
TORONTO — The Canadian dollar edged lower against its U.S. counterpart on Wednesday, extending its pullback from a near two-week high the previous day, as the greenback broadly rose and investors worried about the global economic outlook.
The U.S. dollar <.DXY> rose against a basket of currencies as British Prime Minister Boris Johnson’s move to limit parliament’s opportunity to derail his Brexit plans weighed on sterling.
U.S. stocks declined after moves in the U.S. bond market brought back fears of a recession as the trade war between the United States and China drags on.
Canada exports many commodities, including oil, so its economy could be hurt by a slowdown in the global economy.
U.S. crude
At 9:39 a.m. (1339 GMT), the Canadian dollar
The decline for the loonie came ahead of the release on Friday of Canada’s secondquarter gross domestic product data, which could help guide expectations for next week’s Bank of Canada interest rate decision.
Money markets expect the central bank to ease rates by the end of the year.
Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries.
The two-year