Canadian dollar pulls back from 10-day high, $1.3000 out of reach

Thu Feb 16, 2017 4:23pm EST
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By Fergal Smith

TORONTO (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Thursday, pulling back from an earlier 10-day high even as oil rose and the greenback lost ground against a basket of major currencies.

The loonie touched its highest since Feb. 6 at C$1.3010, stalling just in front of the C$1.3000 threshold.

"It has been a level of support (for the greenback) we have seen for the last few weeks now," said Eric Theoret, currency strategist at Scotiabank.

The U.S. dollar .DXY posted its steepest one-day drop in over two weeks, due to lower U.S. bond yields and uncertainty over the timing of the Federal Reserve's next interest rate increase.

U.S. crude CLc1 prices settled 25 cents higher at $53.36 a barrel, helped by possible renewed efforts by major oil producers to reduce a price-sapping glut. [O/R]

Oil is one of Canada's major exports.

The Canadian dollar CAD=D4 ended at C$1.3080 to the greenback, or 76.45 U.S. cents, slightly weaker than Wednesday's close of C$1.3075, or 76.48 U.S. cents.

"We are right back to the closing levels for the past two days," said Theoret.   Continued...

A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. REUTERS/Mark Blinch