The Canadian dollar CADUSD edged higher against its U.S. counterpart on Thursday, approaching a two-month peak, as equity markets climbed and domestic attention shifted to an upcoming speech by a senior Bank of Canada policymaker.
Technology stocks lifted U.S. stock indexes after a sharp fall in the previous session, with investors closely tracking a meeting of Western leaders as the Ukraine crisis enters its second month.
Bank of Canada Deputy Governor Sharon Kozicki is due on Friday to speak on households and monetary policy to the Federal Reserve Bank of San Francisco.
Money markets expect Canada’s central bank to raise interest rates nearly 200 basis points further this year after it hiked this month for the first time since before the pandemic.
The Canadian dollar was up 0.1 per cent at 1.2550 to the greenback, or 79.68 U.S. cents, after trading in a range of 1.2547 to 1.2586. On Wednesday, it touched its strongest intraday level since Jan. 21 at 1.2540.
The price of oil, one of Canada’s major exports, was down 1.9 per cent at $112.73 a barrel, giving back some of Wednesday’s rally.
Canadian government bond yields were higher across the curve. The 10-year rose 9.5 basis points to 2.412 per cent, moving closer to the three-year peak of 2.443 per cent it touched during Wednesday’s session.
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