August 16, 2019 / 3:22 PM / a month ago

Canadian dollar pares this week's decline as risk appetite rises

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

TORONTO (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Friday, with the currency rebounding from an eight-day low it hit the previous session as investor appetite for risk improved.

Hopes of Chinese economic stimulus and rate cuts from some major central banks helped drive a broad rise in U.S. stocks, as a bruising week for markets drew to a close.

Canada exports many commodities, including oil, so a better outlook for global economic growth could boost its economy.

At 9:54 a.m. (1354 GMT), the Canadian dollar CAD=D4 was trading 0.1% higher at 1.3303 to the greenback, or 75.17 U.S. cents.

The currency, which on Thursday touched its weakest intraday level since Aug. 7 at 1.3339, was on track to fall 0.6% for the week.

Friday’s gain for the loonie came as the price of oil rose, ending a two-day losing streak. U.S. crude oil futures CLc1 were up 0.6% at $54.81 a barrel.

Meanwhile, foreign investors sold a net C$3.98 billion in Canadian securities in June, led by federal bonds, following a revised C$10.28 billion total purchase in May, domestic data showed. It was the third divestment in four months.

Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 3 Canadian cents to yield 1.325% and the 10-year CA10YT=RR was down 23 Canadian cents to yield 1.127%.

On Thursday, the 10-year yield touched its lowest intraday level since October 2016 at 1.083%.

Reporting by Levent Uslu; Editing by Nick Zieminski

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