March 30, 2017 / 2:12 PM / in 8 months

CANADA FX DEBT-C$ posts 9-day high as oil extends gains

    * Canadian dollar at C$1.3311, or 75.13 U.S. cents
    * Bond prices slightly lower across the yield curve

    TORONTO, March 30 (Reuters) - The Canadian dollar
strengthened on Thursday to a nine-day high against its U.S.
counterpart as prices of oil rose for a third straight day,
offsetting broader gains for the greenback.    
    U.S. crude        prices were up 0.83 percent at $49.92 a
barrel, supported by supply disruptions in Libya and lower
output from other Organization of the Petroleum Exporting
Countries exporters.             
    Oil is one of Canada's major exports. 
    The U.S. dollar        climbed against a basket of major
currencies after U.S. fourth-quarter gross domestic product 
growth figures were revised higher and softer-than-expected
readings for German inflation weighed on the euro.
                        
    At 9:27 a.m. ET (1327 GMT), the Canadian dollar          was
trading at C$1.3311 to the greenback, or 75.13 U.S. cents,
stronger than Wednesday's close of C$1.3333, or 75.00 U.S.
cents.
    The currency's weakest level of the session was C$1.3345,
while it touched its strongest since March 21 at C$1.3302.
    The Wall Street Journal meanwhile reported that President
Donald Trump's administration is signaling to Congress that it
would seek mostly modest changes to the North American Free
Trade Agreement in upcoming negotiations with Mexico and Canada.
            
    Canada exports about 75 percent of its exports to the United
States, and traders are closely following developments in U.S.
trade policy. 
    In domestic data, producer prices edged up 0.1 percent in
February from January, which was less than the 0.3 percent
increase analysts had expected. Still, the year-on-year gain
picked up to 3.5 percent from 2.5 percent.             
    On Friday, Canada issues January GDP data, expected by
economists to rise 0.3 percent. That could set the stage for a
stronger performance in the first quarter than initially
expected.         



 (Reporting by Fergal Smith, Editing by W Simon)
  
 

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