Market News
Canadian dollar hits 2-month high as U.S. bond yields fall - REUTERS
By Fergal Smith
Summary
- Canadian dollar gains 0.5% against the greenback
- Touches its strongest since December 13
- Canadian bond yields ease across flatter curve
TORONTO, Feb 13 (Reuters) - The Canadian dollar strengthened to a two-month high against its U.S. counterpart on Thursday as U.S. bond yields declined and a key level of support for the American currency gave way.
The loonie was trading 0.5% higher at 1.4235 per U.S. dollar, or 70.25 U.S. cents, after touching its strongest intraday level since December 13 at 1.4211.
"Today's move lower in U.S. yields has weakened the USD across the board, thereby allowing CAD to post gains," said George Davis, chief technical strategist at RBC Capital Markets.
"Prices broke below strong support at 1.4265 which has contained selloffs in USD-CAD for the past week or so, with the break lower triggering some stops on long positions."
U.S. Treasury yields fell and the greenback posted losses against a basket of major currencies after components of the U.S. producer price report for January indicated that core PCE inflation, the Federal Reserve's preferred inflation measure, is likely to be lower than previously thought when it is released later this month.
