Month-end flows help CAD rebounds from one-month low
By Fergal Smith
TORONTO (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday, rebounding from a one-month low, as risk appetite picked up and investors adjusted their currency hedges to take account of moves this month in their portfolios.
The loonie was trading 0.3% higher at 1.3550 to the greenback, or 73.80 U.S. cents, after earlier touching its weakest since March 28 at 1.3667.
For the week, the loonie was down 0.1%, while it also posted a small decline for April of 0.3%.
The Canadian dollar was higher on Friday "owing to month-end flows," said Michael Goshko, a senior market analyst at Convera Canada.
The rally in equities added to support for the currency, Goshko said.
U.S. stock indexes rose after strong earnings from some major companies, while the price of oil, one of Canada's major exports, settled 2.7% higher at $76.78 a barrel.
Oil rose after U.S. data showed that crude output was declining while fuel demand was growing.
Meanwhile, data showing a slowdown in the Canadian economy could reduce prospects of the Bank of Canada raising interest rates further.
GDP rose 0.1% in February from the previous month, which was less than expected, and is seen falling 0.1% in March.
Canadian government bond yields were lower across a flatter curve, tracking moves in U.S. Treasuries. The 10-year fell 9.3 basis points to 2.869%.
(Reporting by Fergal Smith; editing by Jonathan Oatis)