March 16, 2017 / 1:47 PM / 6 months ago

CANADA FX DEBT-C$ posts a fresh 2-week high in the wake of Fed rate hike

    * Canadian dollar at C$1.3307, or 75.15 U.S. cents
    * Loonie touches its strongest since Feb. 28 at C$1.3277
    * Bond prices fell across the yield curve

    TORONTO, March 16 (Reuters) - The Canadian dollar posted a
fresh two-week high against its U.S. counterpart on Thursday
before consolidating sharp gains since the Federal Reserve
decided to hike interest rates the day before.
    Prices of oil, one of Canada's major exports, were up for a
second day, helped by U.S. data showing crude inventories had
dipped after rising for nine weeks.             
    The U.S. dollar        weakened against a basket of major
currencies after Fed officials stuck to their outlook for two
more rate hikes this year and three in 2018, a more gradual path
than some investors had expected.             
    At 9:17 a.m. EDT (1317 GMT), the Canadian dollar         
traded at C$1.3307 to the greenback, or 75.15 U.S. cents,
unchanged from Wednesday's close.
    The currency's weakest level was C$1.3321, while it touched
its strongest since Feb. 28 at C$1.3277.
    Foreign investment in Canadian securities dropped to its
lowest in more than a year in January, as nonresidents bought
bonds while selling stocks and money market paper, Statistics
Canada said.             
    Canadian government bond prices were lower across the yield
curve in sympathy with U.S. Treasuries. The two-year           
fell 2.5 Canadian cents to yield 0.818 percent and the 10-year
            declined 34 Canadian cents to yield 1.803 percent.
    Yields dropped on Wednesday after the Fed did not flag an
accelerated pace of monetary tightening.
    Canadian manufacturing sales data is due on Friday. Sales
are expected to have decreased by 0.2 percent in January after
rising for the previous two months.         

 (Reporting by Fergal Smith; Editing by Jeffrey Benkoe)
  
 

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