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One-hundred-dollar U.S. notesCHOI BU-SEOK

The Canadian dollar closed higher Friday as the U.S. dollar pulled back against most currencies, which in turn helped boost prices for oil and metals.

The Canadian dollar gained 0.14 of a cent to $1.0232 (U.S.).

The July crude contract on the New York Mercantile Exchange rose 36 cents to $100.59 a barrel. A weaker greenback usually helps boost oil prices, which are denominated in dollars, as it makes oil less expensive for holders of other currencies.

Base metals also picked up with the July copper contract on the Nymex ahead 8 cents to $4.19.

Bullion also nudged higher as the June contract in New York gained $13.50 to $1,536.30 an ounce.

The Canadian currency has drifted lower for the past four weeks, partly on signs of further weakness in the U.S. economy.

Data from the U.S. Commerce Department, released Thursday, showed that the economy grew at a tepid annual rate of 1.8 per cent in the first quarter, lower than many economists expected. Higher prices for gasoline and weak consumer spending have held back the economy. The Labour Department also said more people applied for unemployment benefits last week.

"The threat of a string of relatively soft U.S. economic indicators is weighing heavily on Canadian dollar traders, as a weaker growth profile in the U.S. will dampen the outlook for the Canadian economy," said Scotia Capital chief currency strategist Camilla Sutton.

On Friday, the Commerce Department said that both personal income and spending rose 0.4 per cent in April, in line with what economists expected. But the rise in spending was the smallest in three months.

Another report showed that the number of people who signed contracts to buy homes in April plunged 26.5 per cent from a year earlier.

On the plus side, another report showed consumer sentiment in the U.S. rose in May as expectations improved. The University of Michigan's consumer sentiment survey increased to 74.3 in May from 69.8 in April.

Traders also looked ahead to the Bank of Canada's next announcement on interest rates on Tuesday. The central bank had been expected to resume raising rates this summer. But economists widely expect that the central bank will stand pat until the fall, reflecting softening economic conditions around the world.

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