Canadian dollar steady but on track to end weekly win streak

TORONTO:The Canadian dollar was little changed against its US counterpart on Friday as US equity markets rebounded and domestic data showed a drop in industrial capacity to a record low, with the loonie on track to end a string of weekly gains.

The Canadian dollar was trading nearly unchanged at 1.3189 to the greenback, or 75.82 US cents. The currency traded in a range of 1.3151 to 1.3194.

After rising for five straight weeks, the loonie was on track to end the week 1% lower, with a drop in equity markets weighing on the risk-sensitive currency.

Shares on Wall Street rose on Friday following a pullback in the previous session, while US crude prices were down 0.2% at $37.23 a barrel after US stockpiles rose unexpectedly. Oil is one of Canada's major exports.

The production capacity of Canadian industries tumbled to 70.3% in the second quarter from 79.8% in the first quarter due to shutdowns to battle the coronavirus outbreak, Statistics Canada said.

Separate data from the national statistical agency showed the ratio of Canadian household debt-to-income posted a record decline in the second quarter, falling to 166.8% from a revised 171.1% in the first quarter, and that producer prices rose for the fourth consecutive month in August, up 0.1% from July.

It is still too soon to start talking about an exit from monetary stimulus, Bank of Canada Governor Tiff Macklem said on Thursday, adding that the central bank would take account of the currency's recent move higher against the US dollar as it assesses the amount of stimulus needed in the economy.

Canadian government bond yields were little changed across the curve on Friday, with the 10-year dipping less than half a basis point to 0.561%.