Canadian dollar weakens .two% against the greenback
Touches its strongest due to the fact Feb. 14 at 1.3303
Canadian property sales rise 1.four% in March
ten-year yield touches its highest due to the fact March ten
(Adds analyst quotes and facts all through updates rates)
By Fergal Smith
TORONTO, April 14 (Reuters) – The Canadian dollar weakened against its U.S. counterpart on Friday but held on to most of its weekly advance as oil rates rose and investors took stock of current strength in the domestic economy.
The loonie was trading .two% decrease at 1.3365 to the greenback, or 74.82 U.S. cents, immediately after earlier touching its strongest level due to the fact Feb. 14 at 1.3303. For the week, it was up 1.1%.
“The Canadian economy appears like its in quite fantastic shape,” stated Edward Moya, senior industry analyst at OANDA in New York.
“The labour industry has been incredibly powerful and even though there is nonetheless uncertainty as to how powerful disinflation trends stay, there is nonetheless a lot of optimism about the economy.”
The Bank of Canada on Wednesday raised its development forecast for 2023 to 1.four% from 1.% in January as it left its benchmark interest price on hold at four.50%.
The governing council of the BoC discussed raising prices at its policy meeting just before deciding to leave them on hold, the central bank’s governor, Tiff Macklem, stated on Friday.
It assists that 1 of Canada’s crucial exports is oil, Moya stated.
Oil settled .four% greater at $82.52 a barrel, adding to its current gains, immediately after the West’s power watchdog stated international demand will hit a record higher this year.
One particular region of weakness for Canada’s economy in current months has been the housing industry. But information on Friday showed that property sales rose 1.four% in March from February, the second straight month of greater sales.
Canadian bond yields rose across the curve, tracking the move in U.S. Treasuries, as hopes faded of an early pause in Federal Reserve price hikes.
The ten-year touched its highest due to the fact March ten at three.074% just before dipping to three.038%, up six.7 basis points on the day. (Reporting by Fergal Smith Editing by Jonathan Oatis and Daniel Wallis)