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The Canadian dollar eased off its one-month high against the US dollar on Friday, having trouble capitalising on robust current account surplus data.
Bonds were lower, seesawing in the negative column on the day's data.
The currency was at C$1.3610 to the US dollar, or 73.48 US cents, down from C$1.3582 to the US dollar, or 73.63 US cents, at Thursday's close.
The currency reached a one-month high on Tuesday, but slowly eased during the overseas session.
It was unable to inch much higher on the back of news that Canada's current account surplus widened in the first quarter to C$9.49 billion, its highest in three years, from C$6.66 billion in the fourth quarter of last year. The figure beat market expectations for the surplus to widen to C$8 billion.
"The most surprising thing has been the fact that we got much stronger than expected current account data and the Canadian dollar is struggling to rally here," said George Davis, director of global research, at RBC Capital Markets.
"I think there's a little bit of cross activity, selling the Canadian dollar against some of the crosses that is holding the Canadian dollar above C$1.36."
Meanwhile, Canadian industrial product prices edged up 0.8 percent in April from March and Statscan revised March's rise up to 0.6 percent from the preliminary estimate of 0.5 percent.

Copyright Reuters, 2004

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