TORONTO — The Canadian dollar was little
changed against its U.S. counterpart on Thursday as oil prices
rose and investors weighed data showing rising U.S. consumer
prices, with the currency holding near an earlier six-day low.
The loonie was trading nearly unchanged at 1.2111
to the greenback, or 82.57 U.S. cents, having touched its
weakest intraday level since last Friday at 1.2127.
The price of oil, one of Canada’s major exports, rose after
slipping the previous day on data indicating weak U.S. driving
season fuel demand. U.S. crude prices increased 0.5% to
$70.31 a barrel.
The number of Americans filing new claims for unemployment
benefits fell last week to the lowest level in nearly 15 months,
while consumer prices increased further in May as the pandemic’s
easing grip on the economy continues to boost domestic demand.
Bank of Canada Deputy Governor Tim Lane is due to speak to
Western Canadian financial advisers at 1 p.m. EDT (1700 GMT).
On Wednesday, the central bank left its key interest rate
unchanged at a record low 0.25%, as expected, and said the
economy would “rebound strongly” as COVID-19 vaccinations picked
Canadian government bond yields were higher across a steeper
curve, tracking the move in U.S. Treasuries.
The 10-year yield rose 3.1 basis points to
1.442%, having rebounded from its lowest intraday level in
nearly three months on Wednesday at 1.403%.
(Reporting by Fergal Smith
Editing by Paul Simao)