Loonie cuts weekly decline

The Canadian dollar strengthened against its US counterpart on Friday, paring this week's decline, as oil prices rallied and domestic data showed the trade deficit narrowed in August. Canada posted a trade deficit of C$955 million in August after a revised C$1.4 billion deficit in July, as both imports and exports rose, Statistics Canada said. Export volumes were less encouraging, dipping 0.2%.
At 9:28 a.m. (1328 GMT), the Canadian dollar was trading 0.2% higher at 1.3304 to the greenback, or 75.17 US cents. The currency, which was on track to decline 0.4% for the week, traded in a range of 1.3300 to 1.3339. Canadian government bond prices were lower across much of the yield curve in sympathy with US Treasuries. The two-year fell 3 Canadian cents to yield 1.438% and the benchmark 10-year was down 6 Canadian cents to yield 1.257%. The 10-year yield touched its lowest intraday level since Sept. 5 at 1.230%.