2023-11-17 21:02:59
The Canadian dollar strengthened once morest its U.S. counterpart on Friday, adding to its gains for the week, as oil prices rebounded and recent evidence that inflation was slowing weighed on the greenback.
The loonie was trading 0.3% higher at 1.3715 per greenback, or 72.91 US cents, following moving in a range of 1.3709 to 1.3770. For the week, the currency strengthened by 0.6%.
The Canadian dollar’s gains came as the U.S. dollar posted one of its biggest weekly declines this year once morest a basket of major currencies, pressured by colder-than-expected U.S. inflation data that put the question market expectations for when the Federal Reserve will cut rates.
“The feeling is that inflation is potentially starting to come under control, oil prices are rising and that’s causing a bid for the loonie today,” said Rahim Madhavji, president of KnightsbridgeFX.com.
The price of oil, one of Canada’s top exports, rose as investors who had taken short positions took profits, causing prices to rebound to record lows in four months during the previous session. U.S. sanctions on some Russian oil carriers also provided support.
U.S. crude oil futures settled at $75.89 a barrel, up 4.1%.
National data showed that producer prices fell 1.0% in October compared to September, due to lower prices for energy and petroleum products, as well as lumber.
Canada’s consumer price index for October, due out Tuesday, might provide further evidence of slowing prices. Analysts expect the CPI to fall at an annual rate of 3.2%, down from 3.8% in September.
Canadian government bond yields were mixed on a flatter curve. The 10-year rate remained unchanged at 3.680% following reaching its lowest level since September 14 at 3.635%. (Reporting by Fergal Smith, Editing by Marguerita Choy)
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