Canadian dollar nearly flat ahead of long weekend

Fri May 16, 2008 5:04pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By John McCrank

TORONTO (Reuters) - The Canadian dollar was flat against the U.S. dollar on Friday in quiet trade ahead of Canada's Victoria Day long weekend, but it did record its second straight weekly gain as the commodity-linked currency drew support from robust oil prices.

Canadian bond prices, with no key economic data to consider, drifted lower along with the U.S. market.

The Canadian currency closed at US$1.0002, valuing a U.S. dollar at 99.98 Canadian cents, up a bit from US$1.0000 at Thursday's close.

The currency rose 0.6 percent this week after a gain of 1.4 percent last week.

Early in the session, the Canadian dollar rose to US$1.0049 as U.S. crude oil touched a record high near $128 a barrel. But the currency fell back to parity as oil prices eased.

Canada is a major oil producer and exporter and its currency often follows prices for the commodity, a trend that started to regain momentum in recent weeks.

While the Canadian dollar was pretty much unchanged versus the greenback, it fell against most other major currencies, in tandem with the U.S. dollar, said Camilla Sutton, currency strategist at Scotia Capital.

That was due to weak U.S. consumer confidence data, which raised some concerns about U.S. second-quarter economic growth. The United States is by far Canada's biggest trading partner.   Continued...

<p>Newly pressed Canadian one dollar coins at the Royal Canadian Mint in Winnipeg on November 14, 2007. REUTERS/Fred Greenslade</p>