Canadian dollar clings to weekly gain

The Canadian dollar edged lower against its US counterpart on Friday but held near an earlier five-week high as the reduction of some global investment risks weighed on the greenback.

The US dollar weakened against a basket of major currencies, pressured by the sapping of safe-haven demand after the announcement of an initial trade deal between the United States and China and an election victory for Britain's Brexit-backing Conservative Party.

Canadian dollar six-month volatility was trading at an annualized rate of less than 4.5%, which was near a record low.

At 3:06 p.m. (2006 GMT), the Canadian dollar was trading 0.1% lower at 1.3189 to the greenback, or 75.82 US cents. The currency touched its strongest intraday level since Nov. 6 at 1.3151.

For the week, the loonie was up 0.5%.

Canadian government bond prices were higher across a flatter yield curve in sympathy with US Treasuries. The two-year rose 7 Canadian cents to yield 1.663% and the 10-year was up 77 Canadian cents to yield 1.585%.

Earlier in the day, the 10-year yield touched its highest level since May 23 at 1.695%.