C$ steadies near 2-week high versus weaker greenback
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C$ steadies near 2-week high versus weaker greenback
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* Canadian dollar at $1.2678, or 78.88 U.S. cents
* Loonie touches its strongest since Oct. 25 at C$1.2666
* Bond prices lower across a steeper yield curve
* 10-year yield touches a 1-week high at 1.978 percent

By Fergal Smith
TORONTO, Nov 10 (Reuters) - The Canadian dollar held near a
two-week high against its U.S. counterpart on Friday, benefiting
from a recent rise in oil prices and a weakening of the
greenback this week.
At 4 p.m. ET (2100 GMT), the Canadian dollar was
little changed at C$1.2678 to the greenback, or 78.88 U.S.
cents.
The currency's weakest level of the session was C$1.2695,
while it touched its strongest since Oct. 25 at C$1.2666.
"The loonie is just following along today, not driven by a
strong catalyst but driven by ebbs and flows of the U.S.
dollar," said Rahim Madhavji, President at Knightsbridge Foreign
Exchange.
The U.S. dollar added to this week's losses against a
basket of currencies, pressured by investor disappointment that
a landmark U.S. tax bill may be delayed until 2019.
U.S. crude was trading 0.6 percent lower at $56.84 a
barrel after a report showing that U.S. drillers added the most
oil rigs in a week since June.
Earlier this week oil, one of Canada's major exports,
reached a more than two-year high of nearly $58.
Still, the Canadian dollar is unlikely to recapture its
tight link with the price of oil even as the interest rate
outlook settles, given crude trades far removed from levels
needed to affect investment in Canada's energy sector,
economists and strategists said.
The loonie has also been helped this week by a speech on
Tuesday by Bank of Canada Governor Stephen Poloz which was less
dovish than the market had expected.
The currency rose 0.6 percent for the week.
Efforts to revive the Trans-Pacific Partnership (TPP) trade
deal foundered on Friday when Canadian Prime Minister Justin
Trudeau failed to show up for a meeting to agree a path forward
without the United States.
Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries. The two-year
fell 2 Canadian cents to yield 1.463 percent and the
10-year declined 27 Canadian cents to yield 1.970
percent.
The 10-year yield touched its highest intraday since Nov. 3
at 1.978 percent.
Canada's bond market will be closed on Monday in lieu of
Remembrance Day.

(Reporting by Fergal Smith
Editing by Lisa Von Ahn and Sandra Maler)


2017-11-11 00:07:40


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