TORONTO: The Canadian dollar edged higher against its US counterpart on Thursday, adding to gains over the previous two days, as oil prices rose and domestic data showed the economy likely expanding for a sixth straight month in November.

The loonie Bwas trading 0.1% higher at 1.2820 to the greenback, or 78.00 US cents, after trading in a range of 1.2812 to 1.2853. The currency strengthened on Tuesday and Wednesday after slumping on Monday to its weakest level in one year at 1.2963.

Canadian gross domestic product rose 0.8% in October from September, in line with analyst estimates, while a preliminary estimate for November showed growth of 0.3%, Statistics Canada said. The Bank of Canada, which is expected to begin hiking interest rates in the coming months, has projected that the economy will grow at an annualized rate of 4% in the fourth quarter.

Global shares and the price of oil, one of Canada’s major exports, gained ground on signs that the Omicron variant of COVID-19 might be less severe than feared. US crude prices were up 0.5% to $73.10 a barrel. Canadian government bond yields rose across a steeper curve, tracking the move in US Treasuries. The 10-year was trading 3.4 basis points higher at 1.458% after touching on Monday its lowest level in nearly three months at 1.282%.


Comments are closed.