The Canadian dollar strengthened against its US counterpart on Friday, adding to this week's gains as oil prices rose and US stocks climbed back to near record highs. At 3:58 pm (1958 GMT), the Canadian dollar was trading 0.4% higher at 1.3329 to the greenback, or 75.02 US cents. The currency, which was up 0.5% for the week, traded in a range of 1.3313 to 1.3386. The loonie made ground despite data showing Canadian home prices fell in March for the sixth straight month. Canadian government bond prices were lower across a steeper yield curve in sympathy with US Treasuries.
The two-year fell 8.5 Canadian cents to yield 1.633% and the 10-year was down 54 Canadian cents to yield 1.784%, its highest yield since March 12. The S&P 500 moved within a percent of September's record closing high after the largest US bank soothed worries that the first-quarter earnings season would pour cold water on Wall Street's big rally back from last year's slump.
Canada is a major exporter of commodities, including oil, so its currency tends to benefit from the positive signal higher stock prices send about the outlook for the global economy.
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