TORONTO: The Canadian dollar strengthened to a nine-day high against its US counterpart on Friday after stronger-than-expected domestic jobs data supported the case for further interest rate increases from the Bank of Canada next year.
Canada's economy added 35,300 jobs in October on gains in full-time employment, while wages posted their biggest gain in 18 months. Analysts had expected the economy to add 15,000 job.
"The jobs data looks pretty good, with full-time employment way up again," said Andrew Kelvin, senior rates strategist at TD Securities.
"What we have seen in the labor data does support tighter (monetary) policy at some point next year and perhaps sooner than later."
Perceived chances of another rate hike by March rose to 88 percent from 77 percent before the data, the overnight index swaps market indicated .
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