C$ hits 1-month low as greenback broadly climbs

TORONTO (Reuters) - The Canadian dollar weakened to a one-month low against a broadly firmer greenback on Friday as investors weighed U.S. jobs data and trade discussions between top officials from China and the United States.

U.S. and Canada Dollar notes are seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration

The U.S. dollar .DXY climbed against a basket of major currencies despite a smaller-than-expected rise in U.S. jobs for the month of April.

Officials from China and the United States reached a consensus on some aspects of the countries’ trade row, but disagreements over other issues remain “relatively big,” China said.

Canada’s commodity-linked economy could be hurt if the trade spat between the two economic giants slows global growth.

At 9:25 a.m. EDT (1325 GMT), the Canadian dollar CAD=D4 was trading 0.4 percent lower at C$1.2912 to the greenback, or 77.45 U.S. cents.

The currency touched its weakest level since April 3 at C$1.2917. For the week, the loonie was on track to fall 0.7 percent.

Losses for the loonie on Friday came after data the day before showed that Canada’s trade deficit had widened to a record in March.

The price of oil, one of Canada’s major exports, stayed below recent highs as global supplies remained tight and the market awaited news from Washington on possible new U.S. sanctions against Iran.

U.S. crude CLc1 prices were up 0.06 percent at $68.47 a barrel.

Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR rose 2.5 Canadian cents to yield 1.897 percent and the 10-year CA10YT=RR gained 22 Canadian cents to yield 2.300 percent.

Reporting by Fergal Smith; Editing by Bernadette Baum