The Canadian dollar strengthened against its U.S. counterpart on Friday as oil rose and investors weighed data showing a pickup in U.S. employment, with the currency recovering from an earlier 11-day low.
The loonie was trading 0.4 per cent higher at 1.2382 to the greenback, or 80.76 U.S. cents, the biggest advance among G10 currencies. The currency touched its weakest intraday level since June 21 at 1.2449.
U.S. job growth accelerated in June as companies, desperate to boost production and services amid booming demand, raised wages and offered incentives to draw millions of reluctant unemployed Americans back into the labour force.
Canada sends about 75 per cent of its exports to the United States, including oil.
U.S. crude oil futures were up 0.2 per cent at $75.38 a barrel as OPEC+ ministers delayed an output policy meeting. Sources said the United Arab Emirates had balked at proposals that included raising supply by 2 million barrels per day (bpd) by the end of the year.
Canada posted a trade deficit of C$1.39-billion in May, as imports increased while exports fell, Statistics Canada said. Analysts had predicted a surplus of C$370-million.
Separate domestic data showed that the value of building permits fell 14.8 per cent in May from April.
The loonie will strengthen over the coming year, bolstered by higher oil prices and reduced stimulus from the Bank of Canada, but gains could stop short of the currency’s recent six-year high near 1.20, a Reuters poll showed.
Canadian government bond yields fell across a flatter curve, tracking the move in U.S. Treasuries. The 10-year was down 2.4 basis points at 1.364 per cent, near the bottom of its range since March.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.