Canadian dollar weakens 0.3 against the greenback
Touches its weakest since March 27 at 1.3735
Oil rebounds from a threeweek low
10year yield jumps 23.6 basis points

TORONTO, Oct 3 Reuters The Canadian dollar weakened to a sixmonth low against its U.S. counterpart on Tuesday as surging longterm borrowing costs spooked investors and despite hawkish comments from a Bank of Canada policymaker.

The loonie was trading 0.3 lower at 1.3715 to the greenback, or 72.91 U.S. cents, after touching its weakest intraday level since March 27 at 1.3735.

It39;s been dragged around with higher U.S. yields, that39;s for sure, said Amo Sahota, director at Klarity FX in San Francisco. The U.S. dollar has been on an 11week run to the upside, so that39;s not necessarily helping the loonie.

The U.S. dollar added to recent gains against a basket of major currencies, briefly rising above the psychological 150perdollar level against the yen, as the selloff in U.S. Treasuries showed signs of capitulation by major investors.

Canadian businesses have made larger and more frequent price changes since the pandemic, passing on higher costs to consumers, and that behavior could stoke inflation, Bank of Canada Deputy Governor Nicolas Vincent said.

Vincent39;s comments helped underpin Canadian bond yields, Sahota said, adding that the market is still gunning for another rate hike from the Canadian central bank.

Money markets see a 64 chance that the BoC will tighten further by the end of the…