CANADA FX DEBT-C$ hits 6-day low as Fed tightening risk clips sentiment
Canadian dollar weakens 0.4% against the greenback
Touches its weakest since last Tuesday at 1.3459
Price of U.S. oil increases 0.4%
10-year yield touches a near 4-week high
TORONTO, Feb 6 (Reuters) - The Canadian dollar weakened to its lowest level in nearly one week against its U.S. counterpart on Monday as investors worried the Federal Reserve will raise interest rates further and keep them at higher levels for longer.
Equity markets globally fell and the safe-haven U.S. dollar gained ground against a basket of major currencies after Friday's blockbuster U.S. jobs report ran counter to hopes that the Fed will soon pause its aggressive tightening campaign and then shift to cutting rates later this year.
The Bank of Canada has already signaled a pause. Its governor, Tiff Macklem, is due to speak on Tuesday. Investors will also be looking to the release of Canadian jobs data at the end of the week for clues on the strength of the domestic economy.
The Canadian dollar was trading 0.4% lower at 1.3455 to the greenback, or 74.32 U.S. cents, after touching its weakest since last Tuesday at 1.3459.
The price of oil, one of Canada's major exports, rallied but was still trading near three-week lows. U.S. crude prices were up 0.4% at $73.66 a barrel.
Canadian government bond yields rose across the curve, tracking the move in U.S. Treasuries.
The 10-year touched its highest since Jan. 12 at 3.048% before dipping to 3.013%, up 8.4 basis points on the day. (Reporting by Fergal Smith; Editing by Andrea Ricci)