By Ketki Saxena Investing.com Canada

Investing.com — The Canadian dollar fell against its U.S. counterpart today, on track for its biggest drop in nearly four weeks, as the safe-haven U.S. dollar rose against a basket of major currencies and that the Canadian currency was under pressure from the drop in crude oil.

USD/CAD rose 1.54% to settle at C$1.3057 against the US Dollar as risk aversion sentiment and global slowdown fears weighed on traders, adding to the attractiveness of the greenback as a safe haven.

The loonie also came under pressure from a sharp decline in oil, one of Canada’s top exports, as worries about a global recession outweighed worries about supply shortages. .

“Derek Holt, vice president of economics for capital markets at Scotiabank (TSX:BNS), said in a note that risk aversion sentiment is spreading across asset classes this morning.” The CAD and short-term interest rates continue to ignore the Bank of Canada’s twin business and consumer surveys which were released yesterday.”

Yesterday’s Bank of Canada survey showed consumer inflation expectations yesterday hit record highs in the short term and rose “significantly” in the longer term. The data reinforced calls for a 75 basis point hike in the Canadian central bank’s next policy move in mid-July, and investors increased their bullish bets on the Canadian currency.

Canadian bond yields, meanwhile, continued to decline and remained flattering on the downside, lagging US Treasuries.

The Canadian 10-year bond fell 0.102 points to 3.072%, its lowest level in a month. The Canadian 5-year bond fell 0.099 points to 2.953%, while the Canadian 2-year bond fell 0.062 points to 3.004%.