* Canadian dollar strengthens 0.6% against the greenback
* March factory sales rise 3.5%; wholesale trade up 2.8%
* Price of U.S. oil rises 1.2%
* Canadian bond yields ease across much of a flatter curve
TORONTO, May 14 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Friday and was on track for its
seventh straight weekly gain as oil prices rose and domestic
data added to evidence of robust economic growth in the first
quarter.
Canadian factory sales rose 3.5% in March from February, led
by the motor vehicle, petroleum and coal, and food product
industries, while wholesale trade was up 2.8%, Statistics Canada
said.
The price of oil, one of Canada's major exports, reversed
some of the previous day's sharp losses as stock markets
strengthened, though gains were capped by the coronavirus
situation in major oil consumer India and the restart of a fuel
pipeline in the United States.
U.S. crude prices rose 1.2% to $64.61 a barrel, while
the Canadian dollar was trading 0.6% higher at 1.2093 to
the greenback, or 82.69 U.S. cents, moving back in reach of
Wednesday's 6-year peak at 1.2042.
For the week, the loonie was on track to gain 0.3%. It has
climbed more than 5% since the start of the year, the biggest
gain among G10 currencies, supported by surging commodity prices
and a shift last month to a more hawkish stance by the Bank of
Canada.
Still, BoC Governor Tiff Macklem said on Thursday if the
currency continues to rise, it could create headwinds for
exports and business investment as well as affecting monetary
policy.
The U.S. dollar fell against a basket of major
currencies, pressured by a recovery in risk appetite across
markets after Federal Reserve officials helped calm concerns
about a quick policy tightening in response to accelerating U.S.
inflation.
Canadian government bond yields were lower across much of a
flatter curve, with the 10-year down 2 basis points
at 1.549%. On Thursday, it touched its highest intraday in eight
weeks at 1.624%.
(Reporting by Fergal Smith
Editing by Nick Zieminski)
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