C$ holds near one-week high as oil prices climb

TORONTO: The Canadian dollar was little changed against its US counterpart on Wednesday, holding near an earlier eight-day high as rising oil prices offset domestic data showing the fifth consecutive monthly decline for home prices.

At 9:05 a.m. (1305 GMT), the Canadian dollar was little changed at 1.3359 to the greenback, or 74.86 US cents. The currency touched its strongest level intraday since March 5 at 1.3348.

The price of oil, one of Canada's major exports, rose after an official forecast showed slower-than-expected US production and US sanctions stalled exports from Venezuela. US crude oil futures were up 1.1 percent at $57.52 a barrel.

The Teranet-National Bank Composite House Price Index showed Canadian home prices fell 0.4 percent last month from January. Canada's once-hot housing market has softened since the start of last year, weighed by tighter mortgage rules and five interest rate hikes from the Bank of Canada since July 2017.

Bank of Canada Senior Deputy Governor Carolyn Wilkins is due to speak on Thursday. Last week, the central bank said it expects the Canadian economy will be weaker in the first half of 2019 than it projected in January, and that it was watching developments in household spending, oil markets and global trade.

The United States is working on a plan to lift tariffs from Mexican and Canadian steel and aluminum but preserve the gains that domestic producers have received from the duties so far, US Trade Representative Robert Lighthizer said on Tuesday.

Canadian government bond prices were lower across the yield curve in sympathy with US Treasuries after US data showed new orders for US-made capital goods in January posted their largest increase in six month.

The 10-year declined 14 Canadian cents to yield 1.754 percent. On Tuesday, the 10-year yield touched its lowest intraday since June 2017 at 1.728 percent.