Canadian dollar higher for second straight week
By Frank Pingue
TORONTO (Reuters) - The Canadian dollar rose for the second straight week against the U.S. currency on Friday, but a bout of profit-taking yanked it back from the five-week high it hit earlier in the session.
Domestic bond prices, with no Canadian data to digest until later next week, followed the U.S. market to a higher close as recent data upped the possibility for a U.S. Federal Reserve rate cut next month.
The Canadian dollar closed at US$1.0198, valuing each U.S. dollar at 98.05 Canadian cents, up from Thursday's close of US$1.0183, or 98.20 Canadian cents per U.S. dollar.
Early in the session the Canadian dollar hit US$1.0250, which marked its highest level since November 20 and gave it a gain of about 4.8 percent over the past two weeks.
But the currency spent most of the last half of the North American session moving lower as traders pocketed a portion of the recent gains ahead of the weekend.
"I think obviously momentum is absent over the holiday period," said Gareth Sylvester, senior currency strategist at HIFX Plc in San Francisco.
"It's just really a case of some short-term positions being closed and a bit of profit-taking ahead of the broken start to the first week of January."
Monday is the last trading day of 2007 as financial markets will close Tuesday for New Year's Day and reopen on Wednesday. Continued...