* Loonie touches its strongest since March 18 at 1.2378
* Canadian retail sales rise 4.8% in February
* Price of U.S. oil increases 0.7%
* Canadian bond yields were little changed
TORONTO, April 28 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday, holding near
its strongest level in almost six weeks as oil prices climbed
and retail sales data added to evidence of recovery in the
domestic economy.
Canadian retail sales rose 4.8% in February from January,
surpassing estimates of a 4% gain, on higher sales at motor
vehicle and parts dealers, as well as gasoline stations, data
from Statistics Canada showed.
A flash estimate showed a 2.3% increase for March sales.
Oil, one of Canada's major exports, advanced as forecasts of
a recovery in global fuel demand offset a surge in India's
coronavirus cases and rising U.S. crude inventories.
U.S. crude prices were up 0.7% at $63.39 a barrel,
while the Canadian dollar was nearly unchanged at 1.2391
to the greenback, or 80.70 U.S. cents. It touched its strongest
intraday level since March 18 at 1.2378.
The Bank of Canada is expecting strong consumption-led
growth in the second half of the year as vaccinations against
COVID-19 continue, Governor Tiff Macklem said on Tuesday.
Last week, the central bank signaled it could start hiking
rates from their record lows in late 2022 and cut the pace of
its bond purchases.
The Federal Reserve is not expected to be as hawkish as
Canada's central bank at its policy announcement this afternoon.
The decision is due at 2 p.m. ET (1800 GMT).
Canadian government bond yields were little changed across
the curve, with the 10-year trading at 1.556%.
(Reporting by Fergal Smith
Editing by Bernadette Baum)
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