Canadian dollar climbs to 2-week high ahead of domestic jobs data
- Canadian dollar strengthens 0.3% against the greenback.
- Loonie touches a two-week high at 1.2569.
- Price of US oil increases 1.6%.
- Canada's 10-year yield rises half a basis point to 1.416%.
TORONTO: The Canadian dollar strengthened to a two-week high against its US counterpart on Thursday, as inflation concerns eased and ahead of domestic employment data on Friday that could guide expectations for the Bank of Canada policy outlook.
The safe-haven US dollar fell and world stocks rose to their highest in just over a week after a report on US consumer prices on Wednesday calmed investor nerves about inflation.
The price of oil, one of Canada's major exports, also moved higher, supported by a steep fall in US fuel stocks.
US crude prices rose 1.6% to $65.5 a barrel, while the Canadian dollar was trading 0.3% higher at 1.2582 to the greenback, or 79.48 US cents. The currency touched its strongest intraday level since Feb. 25 at 1.2569.
Analysts forecast that Canada added 75,000 jobs in February after two straight months of declines.
On Wednesday, the Bank of Canada revised to positive its outlook for GDP growth in the first quarter, saying Canada's economy was proving more resilient to a second wave of COVID-19 than expected. The central bank could reduce its bond purchases as soon as next month, some strategists say.
Canadian government bond yields were mixed across the curve, with the 10-year up half a basis point at 1.416%. On Monday, it touched its highest level since January 2020 at 1.545%.
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