TORONTO: The Canadian dollar was little changed against its broadly stronger US counterpart on Friday as data showed further recovery in Canada's economy, with the currency steadying after a sharp decline earlier in the week.
The Canadian dollar was trading nearly unchanged at 1.3320 to the greenback, or 75.08 US cents, having traded in a range of 1.3280 to 1.3348.
For the month it was also nearly unchanged, after falling since the start of the week by 1.5%, its biggest weekly decline since April. The Canadian economy grew by 1.2% in August, the fourth consecutive monthly gain, while a flash estimate showed further expansion of 0.7% in September.
Canadian government bond yields rose across the curve, with the 5-year up 3.8 basis points at 0.405%.
The sell-off this week for the loonie is part of "a broader move that is linked to the equity pullback," said Simon Côté, managing director, risk management solutions at National Bank Financial, adding that the currency's decline encouraged many corporate clients to step into the market to hedge their US dollar receivables.
Canada runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital.—Reuters
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