The Canadian dollar steadied against the greenback and closed little changed on Friday after some data-related volatility early in the day. The currency rallied in the morning following the release of data that showed a surge in US employment last month, suggesting the US economic recovery has gathered speed.
There was also a pop after Canada's Ivey Purchasing Managers Index jumped to 69.3 in February from 41.4 in January. Analysts had expected a reading of 51.7. Both rallies were short-lived. Michael O'Neill, managing director at Knightsbridge Foreign Exchange, said the Canadian dollar failed to sustain its gains because it was being sold in cross-trading, especially against the strengthening euro. "The Canadian dollar is torn," he said.
The euro has charged higher since European Central Bank President Jean-Claude Trichet hinted on Thursday at an interest rate rise in April. Against the greenback, it broke above the psychologically important $1.40 level. Support for the Canadian currency continued to come from prices for oil, a major Canadian export, which rose as intensified fighting between loyalists to Libya's Muammar Gaddafi and a rebel army seeking to dislodge him from power spurred more worries about supply disruptions. The Canadian dollar rose as high as C$0.9699 to the US dollar, or $1.0310, but cut gains to finish at C$0.9717 to the US dollar, or $1.0291. That was up a few ticks from Thursday's North American finish of C$0.9722 to the US dollar, or $1.0286.
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