* Canadian dollar strengthens 0.1% against the greenback
* Estimate shows Canadian factory sales up 3.5% in March
* Price of U.S. oil rises 0.3%
* Canadian bond yields were little changed across the curve
TORONTO, April 23 (Reuters) - The Canadian dollar edged
higher against its U.S. counterpart on Friday as the greenback
broadly fell and a domestic preliminary estimate showed that
factory sales rose in March, with the loonie on track to advance
for the fourth straight week.
Canadian factory sales rose 3.5% in March from February,
Statistics Canada said in a flash estimate, adding to evidence
of economic recovery.
The U.S. dollar fell against a basket of major
currencies after better-than-expected flash purchasing managers'
index numbers for the euro zone boosted the euro .
The Canadian dollar was trading 0.1% higher at 1.2486
to the greenback, or 80.09 U.S. cents, having traded in a range
of 1.2470 to 1.2508.
For the week, it was also up 0.1%. It follows slender gains
in the prior three weeks.
On Wednesday, the loonie touched its strongest intraday
level in one month at 1.2455 after the Bank of Canada signaled
it could start hiking interest rates in late 2022. The central
bank sharply boosted its outlook for the Canadian economy and
cut the pace of bond purchases.
The price of oil, one of Canada's major exports, rose on
Friday as support from a European economic recovery countered
record levels of coronavirus infections in India. U.S. crude
prices were up 0.3% at $61.6 a barrel.
Canadian government bond yields were little changed across
the curve, with the 10-year trading at 1.513%.
The gap between it and the U.S. 10-year yield steadied at 4
basis points in favor of the U.S. bond, having narrowed from 19
basis points at the start of the month.
(Reporting by Fergal Smith; Editing by Kirsten Donovan)
Read More
