Canadian dollar steadies near 6-day low as U.S. inflation rises

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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

up.

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)