The Canadian dollar was little
changed against a broadly stronger greenback on Friday as
investors rewarded the currency for ongoing signs of economic
recovery from the coronavirus crisis, with the loonie advancing
for the third straight week.
Canadian retail sales rose by a record 23.7% in June, rising
above February levels for the first time since shutdowns tied to
the virus, Statistics Canada said.
A staggered reopening from lockdowns, supported by fiscal
stimulus, is likely paying off for Canada's economy, with
activity forecast to rebound in the current quarter twice as
fast as in the United States, its biggest trading partner by
"Canada is doing really well on the COVID-19 compared to the
U.S. and Europe," said Greg Anderson, global head of foreign
exchange strategy at BMO Capital Markets in New York. "It makes
sense you'd see the currency start to rally on both fronts as a
result of that."
The euro fell as an August batch of business surveys
pointed to a stuttering economic recovery, while the U.S. dollar
climbed, notching its first weekly rise since mid-June,
and the price of oil settled 1.1% lower at $42.34 a
barrel. Oil is one of Canada's major exports.
The Canadian dollar was trading nearly unchanged at
1.3188 to the greenback, or 75.83 U.S. cents. The currency,
which on Wednesday posted its strongest intraday level in nearly
seven months at 1.3131, traded in a range of 1.3159 to 1.3234.
For the week, the loonie was up 0.6% despite the replacement
of Canada's finance minister amid friction over spending
policies. On Thursday, Ottawa announced measures that will add
billions of dollars to spending, including the extension of an
emergency income-support program.
Canada's 10-year yield eased more than 2 basis
points on Friday, touching its lowest intraday level since Aug.
11 at 0.540%.
(Reporting by Fergal Smith; Editing by Kirsten Donovan and
Andrea Ricci)' />