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 appeal of the dollar as safe investment.

The loonie also came under pressure from the sharp decline in oil, one of Canada’s top exports, as fears of a global recession outweighed those of 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%.