By Ketki Saxena investment.com Canada

Investing.com — The Canadian dollar fell against its U.S. counterpart today, on track for its biggest decline in nearly four weeks, as the safe-haven U.S. dollar rose against a basket of currencies major events and the Canadian currency came under downward pressure in the .

The pair rose 1.54% to settle at 1.3057 Canadian dollars to the US dollar as risk sentiment and concerns over the global slowdown weighed on traders, boosting the greenback’s appeal as a safe haven.

The loonie was also pressured by the sharp decline in oil, one of Canada’s main export commodities, as fears of a global recession prevailed over those of a tight supply.

Derek Holt, vice president of economics for Scotiabank Capital Markets (TSX:BNS), said in a note that risk sentiment is spreading across asset classes this morning. Short-term interest continues to ignore the twin bank of Canada’s business and consumer surveys that were released yesterday.

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

Canadian bond yields, meanwhile, continued to decline and remained lower on a flatter curve, 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%.