The Canadian dollar steadied against its U.S. counterpart on Friday, with the currency remaining near its weakest level in more than a week, as oil prices fell and rising global coronavirus cases offset hopes about a potential vaccine.
The Canadian dollar was trading nearly unchanged at 1.3144 to the greenback, or 76.08 U.S. cents, having touched its weakest intraday level since Nov. 5 at 1.3170. For the week, the currency was on track to decline by 0.7 per cent.
Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global economic outlook.
U.S. crude prices were down nearly 2 per cent at $40.32 a barrel as investors worried about a slow recovery in the global economy and fuel demand due to rising coronavirus infections. But Monday’s promising data from a large COVID-19 vaccine study kept crude on course for a second straight weekly gain.
Canadian industrial product prices were up 1 per cent in October compared to the same month last year, a preliminary estimate from Statistics Canada showed.
Canadian government bond yields were mixed across a steeper curve. The 10-year yield rose nearly 1 basis point to 0.728 per cent, having touched its highest since April 9 at 0.813 per cent.
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